Detroit Diesel to lay off 700 workers

| 8/22/2002

Detroit Diesel said it will lay off up to 700 workers after a federal judge failed to rule on the company's motion to delay the Environmental Protection Agency's Oct. 1, 2002, deadline for lower-emission engines, the Detroit Free Press reported.

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

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

Meanwhile, International Truck and Engine Corp. this month notified its Chatham, Ontario plant to expect a potential reduction of 400 workers "in the November timeframe" because of a "softening in demand" for the company's 9000 Series Class 8 trucks made there, according to Steve Keate, truck group president for International.