South Bend-based AM General LLC is detailing plans to lay off more than 430 employees at its commercial assembly plant in Mishawaka, which is in the process of being acquired by California-based SF Motors Inc. However, the company says the affected employees are expected to return to the facility once SF Motors begins production.
In a notice to the state, AM General says it expects the deal with SF Motors to close as early as October 31, though a time frame for SF Motors to start up production at the plant is not yet known. AM General says the layoffs are slated to begin October 6 and could last six months or longer.
The company says the layoffs are the result of the completion of its contract with Mercedes-Benz U.S. International Inc., which was the last remaining customer contract at the plant. If SF Motors had not agreed to acquire the facility, AM General says the completion of the contract would have resulted in a line shutdown.
The affected employees are represented by the United Auto Workers Local 5 and some employees have displacement or bumping rights.
When the acquisition was announced in June, AM General said SF Motors would retain the existing work force "after a period of retooling" and invest $30 million into upgrades at the facility.