Jul 20, 2012 05:01 PM EDT
Chrysler Idles Engine Plant; Doesn’t Lay Off Workers

Or, it's going to try not to lay off workers.

On July 9, Chrysler informed the state of Michigan that it would close its Mack Avenue Engine II plant, effective September 9. The Detroit Free Press reports that, though the notice said the layoffs must be considered permanent, the company has given to understand that the plant's 200 workers would be reassigned to other plants.

Elsewhere, the paper has reported that Chrysler plants in Detroit; Belvidere, Illinois; Toledo, Ohio; and Warren, Michigan have added employees and offered overtime.

The plant manufactures the 3.7 V6 engine used in the Jeep Liberty and Ram 1500. Chrysler is replacing that engine with a 3.6-liter Pentastar V6 engine built at Chrysler plants in Trenton, Michigan and Saltillo, Mexico.

The Press mentioned rumors that the plant would reopen in 2014 for Maserati. Maserati, like Chrysler, is a Fiat subsidiary; and is slated to reenter the US market.

However, Chrysler insists that there is no such plan for the plant.

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