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Ford supplier cuts jobs in Michigan as some work sent to India

Breana Noble, The Detroit News on

Published in Business News

A Ford supplier in Sterling Heights, Michigan, filed a notice with the state that it's permanently laying off more than 150 people because some of the business is going to India, according to a source familiar with the automaker's plans.

Kern J.G. Enterprise Inc. filed the Worker Adjustment and Retraining Notification, citing "unforeseeable business circumstances" that affected 156 people. Some of the work the company had is going overseas, though some will remain in the United States, according to the person familiar with the sourcing strategy who wasn't permitted to speak publicly on the topic.

The layoff comes as Ford Motor Co. CEO Jim Farley has emphasized the automaker's commitment to U.S. manufacturing and the need for a strong domestic automotive industry amid negotiations between the United States, Canada and Mexico over their trilateral trade agreement. Employing more hourly autoworkers in the United States than any other competitor, Ford last year assembled 83% of the vehicles sold in the United States here and leads the industry in assembling more than six vehicles here for each one it imports.

"Ford does not discuss confidential contracts or relationships with individual suppliers," the automaker said in a statement. "Our sourcing decisions consider quality, delivery, financial stability and operational risk so we can keep our plants operating and delivering vehicles to customers. Ford is committed to American manufacturing and jobs. Reliable suppliers are essential to protecting production and the thousands of American jobs that depend on our plants operating."

The Detroit News left messages at Kern requesting more information on the layoffs.

 

Kern's notification that was recently posted on Department of Labor and Economic Opportunity's website lists a layoff date of Aug. 17.

Kern is a family-owned enterprise that traces its roots to 1967 in Madison Heights, where it started with seven employees, according to the company's website. It makes components for drivetrain and powertrain assemblies, chassis frames and other parts. After moving to Sterling Heights in the 1990s, it has expanded its plant to nearly 200,000 square feet.

Ford is the only major automaker listed on the company's website as a customer, which includes suppliers BorgWarner Inc. and Dana Inc. as well as aftermarket component producers.

Ford has faced backlash for foreign connections under the Trump administration. U.S. Transportation Secretary Sean Duffy in September criticized the Blue Oval for its partnerships with Chinese companies and "delaying" the end of importing Lincolns from China until 2030.


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