Marelli Automotive Lighting USA LLC plans to shut its manufacturing unit in Clarkston, Mich., affecting 263 staff.
The closure is because of “various extended challenges” together with downward trending car volumes “exacerbated by COVID-19” and new know-how from nontraditional suppliers, Marelli stated in a WARN notice filed July 27 with the Michigan Division of Labor and Financial Alternative.
Manufacturing will finish in January, it stated within the discover.
The automotive provider is just not part of a union, the discover stated.
“As a part of Marelli’s ongoing technique to strengthen its market place, we are going to consolidate our U.S.-based automotive lighting manufacturing in a single, present places in Pulaski, Tenn.,” it stated. “This transfer will enhance effectivity, enabling the corporate to turn out to be extra value aggressive whereas assembly buyer demand.”
Marelli didn’t instantly reply to request for remark.
In March, the provider stated it might consolidate three metro Detroit offices to a brand new North American headquarters close to Detroit after Fiat Chrysler Vehicles bought the components unit Magneti Marelli, renamed Marelli, to Japan’s Calsonic Kansei in a $6.5 billion deal final yr.
Later that month, Marelli stated it might briefly suspend all operations in North America because the coronavirus pandemic intensified.