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General Motors to cut 160 jobs at Kokomo plant, wind down semiconductor production

Posted: 3:58 PM, Nov 15, 2016
Updated: 2016-11-15 19:55:16-05

KOKOMO, Ind. -- General Motors will cut 160 jobs from its Kokomo plant as it winds down semiconductor production by mid-2017.

The cuts will reduce the plant's workforce by about 20 percent. Currently it employs more than 755 hourly and salaried employees.

In addition to semiconductors, the plant also does thick film printing and electronic assembly of engine control modules, sensors, power electronics and other items.

"This is a business decision, as current production volumes do not support a profitable operation," GM said in a statement Tuesday.

The company says its current equipment's technical capabilities do not allow it to compete at a global level, and that it would be cost-prohibitive to invest in new equipment to produce semiconductors in Kokomo.

"As a result of the decision, all UAW/GM employees who currently work at the site will be treated in accordance with applicable provisions in the UAW Local and National Agreements," GM said. "We will similarly be identifying opportunities and options for affected salaried employees in the upcoming months."

Approximately 600 jobs are expected to remain at the plant following the cuts.