Michigan Auto Suppliers Announce Plant Closures, Impacting Nearly 450 Jobs

Michigan's automotive industry is facing significant setbacks as two major suppliers, Dana Thermal Products and International Automotive Components (IAC) Group, announce plant closures resulting in nearly 450 job losses.

 

Dana Thermal Products has decided to permanently shut down its Auburn Hills facility, leading to approximately 200 layoffs. The company attributes this move to an "unexpected and immediate reduction in customer orders driven by lower demand for electric vehicles," making continued operations unfeasible. Layoffs commenced on October 9 and are expected to continue through January 31, 2026. Despite this closure, Dana will maintain operations at its driveline manufacturing facility in Auburn Hills.

 

In a parallel development, IAC Group has announced the closure of its plants in Mendon and Alma, affecting a total of 246 employees. The Mendon facility will see 178 layoffs, while the Alma plant will lose 68 positions. These reductions are scheduled to begin on or about December 8. IAC cites "lower cyclical demand" as the primary reason for these temporary workforce reductions and is collaborating with local unions to support affected employees, with plans to recall workers as production needs increase.

 

These closures underscore the challenges facing Michigan's auto supplier industry amid fluctuating demand for electric vehicles and shifts in production strategies by major automakers. The affected employees and their families now face uncertain futures as the industry navigates these turbulent times.