Magna International has laid off 725 workers at its truck frame (chassis) plant in Saint Thomas, Ontario, because customers have reduced production.
The temporary layoffs affect both salaried and hourly workers and are effective from 4 May. The company said the cuts were “due to customers temporarily shutting down their full-size truck plants”.
Key customer General Motors last week said it would shut down 13 US and Mexican assembly plants, including four truck plants, for as long as nine weeks over the summer.
Magna said it planned to resume production at the Formet Industries plant, a manufacturing division of its Cosma operating unit, once customers resume truck production.
A Magna spokesman company could not provide more details for Reuters.
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By GlobalDataMagna last September laid off 400 workers at the plant due to a drop in demand for full-sized trucks. At the time, it said it had 1,600 people working in the St. Thomas plant, the report added.