Detroit Diesel plans to lay off up to 700 workers starting the second week in October.

According to the Detroit Free Press, the company decided to go ahead with layoff plans and retooling its manufacturing facility after a self-imposed Monday deadline to hear a decision on its federal lawsuit asking for a delay in the Oct. 1 emissions regulations.
While Detroit Diesel says it has a new engine ready for Oct. 1, it is concerned about the drastic drop-off in demand expected with the new engines. The Free Press reports that Detroit Diesel wanted to keep producing the current Series 60 alongside the new lower-emissions engines. But because the judge had not made a ruling by Monday, the company decided to go ahead and proceed with retooling the plant. Detroit Diesel general counsel John Farmer told the paper that even if a reply does come, he doesn’t expect it to be favorable.
Last week, the company submitted applications for EPA certification for its Series 60 engine. These initial emission certification applications will cover 20 of the currently available Series 60 engine ratings.
Series 60 production levels will fall from 250 engines a day to 60 a day in October, which means 400 to 700 employees will be laid off.
Detroit Diesel is not the only manufacturer who will probably be laying off workers after the Oct. 1 emissions deadline. According to published reports, International and Caterpillar are expected to, as well.