Detroit, MI — Autokiniton, a major supplier to the Detroit Three automakers, announced it will close its Oakland Stamping plant in Detroit by the end of the year. The closure will result in the permanent layoff of more than 133 employees, marking another blow to the local manufacturing workforce.
According to a WARN (Worker Adjustment and Retraining Notification) filed with the state of Michigan, the closure will take effect by December 31, 2025, with the first round of layoffs expected to start as soon as December 5 and continue until December 19.
“Autokiniton has decided to close the Oakland Stamping facility following a review of its plant portfolio,” the company said in a notification.
Impact on the Workforce and Operations
Autokiniton manufactures small- and medium-sized body stampings and welded assemblies for automakers beyond Ford Motor, General Motors, and Stellantis, providing essential components to the automotive supply chain. However, despite its importance in the industry, the company cited internal business decisions as the reason for the closure.
A company representative from Autokiniton’s New Boston, Michigan headquarters confirmed to the Detroit Free Press that the company would not be providing further comment on the closure decision.
“It’s a business decision after evaluating the portfolio of plants,” an Autokiniton spokesperson said, referring to the company’s decision-making process.
A Shift in Operations
According to Crain’s Detroit Business, employees at the Oakland Stamping plant were informed that the decision was made after reviewing the company’s overall plant portfolio. Autokiniton operates 23 manufacturing and design facilities in Michigan, 36 facilities across the U.S., and several plants internationally, including in Mexico, India, and Brazil.
Many of the union-represented workers at the Oakland Stamping plant have 20 years of experience, with some employees having worked at the facility for decades.
“The closure came as a surprise to many, particularly after the workers ratified a new contract just five months ago that increased wages and benefits,” the report noted.
Context of the Broader Auto Industry Struggles
This closure follows a series of recent setbacks in the auto industry. Earlier in the year, Cleveland-Cliffs, a major steelmaker, laid off over 500 workers at its Dearborn Works facility due to a weak automotive market. The company cited a slowdown in U.S. auto production as the reason for the idling of operations at its blast furnace and steel production facilities.
UAW President Shawn Fain and several hundred UAW members from Local 600 in Dearborn protested Cleveland-Cliffs’ layoffs in August, highlighting the impact of such workforce reductions on local communities.
“We’re here to show solidarity,” Fain said during the protest, calling for better protections for workers in the face of industry-wide cutbacks.
Despite Cleveland-Cliffs’ decision to idle operations, CEO Lourenco Goncalves stated that they would resume production once the U.S. automotive market improves, signaling that industry-wide layoffs may be temporary if conditions improve.
A Changing Landscape for Detroit-Area Suppliers
The closure of Autokiniton’s Oakland Stamping plant adds to the growing list of challenges facing Detroit-area suppliers, as companies continue to adjust to shifting automotive market conditions.
What are your thoughts on this closure and its effect on local workers? Share your views in the comments below.
