Detroit Diesel Seen Going Ahead With Layoff Plans

August 20, 2002 2:45 PM, EDT

Detroit Diesel Corp. will proceed with plans for up to 700 layoffs and a retooling of its plant after a federal judge failed to rule Monday on the company’s motion concerning the Environmental Protection Agency’s deadline for a new, lower-emissions engine, the Detroit Free Press reported Tuesday.

The job cuts are to begin the second week in October. The company employs 1,550 workers in its engine business and 6,000 workers nationwide.

Detroit Diesel wanted to continue to manufacture its traditional engine in addition to the engine required by the EPA to avoid a falloff in demand.

The switch to the newer engines will mean production levels will fall from 250 engines a day to 60 in October, the Free Press said.

Meanwhile, other manufacturers, which may have been following Detroit Diesel’s case with interest, could also be planning layoffs that some have speculated could run into the thousands, the paper said.

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