The Economy

GM Lays Off Some Workers at Buffalo Engine Plant

March 21, 2011

Facility makes engines for Shreveport Assembly Plant, which has shut down due to shortage of parts from Japan.

General Motors is laying off 59 of the 623 workers at its Tonawanda Engine Plant in Buffalo, N.Y., the latest aftershock for the automaker in the wake of the earthquake and tsunami that rocked Japan.

The plant produces engines for several GM vehicles, including the Chevrolet Colorado and GMC Canyon pickups, both of which are assembled in Shreveport, La. GM has suspended production at the Shreveport Assembly Plant this week because of a shortage of parts from Japan.

"When you're not building the trucks, you don't need the engines that go into those trucks," GM spokeswoman Kim Carpenter told IndustryWeek.

The 59 employees will receive unemployment benefits from the state, as well as supplemental unemployment pay that amounts to approximately 75% of their regular compensation.

Carpenter said GM doesn't know how long the layoffs will last.

"We hope to resume production as soon as possible," Carpenter said.

Earlier today, GM Korea said it will curtail production this week by up to 10% because of a possible lack of parts from Japan following the devastating earthquake.

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About the Author

Josh Cable | Former Senior Editor

Former Senior Editor Josh Cable covered innovation issues -- including trends and best practices in R&D, process improvement and product development. He also reported on the best practices of the most successful companies and executives in the world of transportation manufacturing, which encompasses the aerospace, automotive, rail and shipbuilding sectors.

Josh also led the IndustryWeek Manufacturing Hall of Fame, IW’s annual tribute to the most influential executives and thought leaders in U.S. manufacturing history.

Before joining IndustryWeek, Josh was the editor-in-chief of Penton Media’s Government Product News and Government Procurement. He also was an award-winning beat reporter for several small newspapers in Northeast Ohio.

Josh received his BFA in creative writing from Bowling Green University, and continued his professional development through course-work at Ohio University and Cuyahoga Community College.

A lifelong resident of the Buckeye State, Josh currently lives in the Tremont neighborhood of Cleveland. When the weather cooperates, you’ll find him riding his bike to work, exercising his green thumb in the backyard or playing ultimate Frisbee.