MISHAWAKA, Ind. (AP) -- AM General Corp. is laying off 80 workers at its Hummer H2 plant east of South Bend, Ind., because of slumping demand for SUVs.

Company spokesman Craig Mac Nab says the layoffs will begin Tuesday and continue throughout September.

AM General, which makes the H2 for General Motors Corp., earlier announced it planned to cut the number of H2s it was producing daily from 52 to 35 after Labor Day. Mac Nab says that number now will fall to 25 a day.

H2 sales are down about 40 percent so far this year, compared with the same period last year.