Metal Stamping Supplier Autokiniton to Close Detroit Plant and Lay Off Workers

According to foreign media reports, metal stamping parts supplier Autokiniton plans to close its plant in Detroit and lay off more than 100 employees. It is reported that Autokiniton’s customers include Ford, General Motors, and Stellantis.

Image Source: Autokiniton

Officials from the United Auto Workers (UAW) told Crain’s Detroit Business, a media outlet under Automotive News, that Autokiniton informed employees last week of its plan to shut down its Oakland, U.S. stamping plant complex by December 31.

The UAW stated that this plant closure is expected to be permanent. Autokiniton is a Tier 1 supplier mainly producing small and medium-sized body stampings and welded assemblies.

Nayeesha Conway, president of UAW Local 155 representing the affected workers, said Autokiniton has informed employees that the closure of the Detroit plant was a business decision made after evaluating its plant portfolio. "Many of these employees have worked for the company for over 20 years. It's really heartbreaking to see so many people lose their jobs."

It is worth noting that just five months before the announcement of the closure of the Detroit plant, Autokiniton employees had only recently ratified a new contract with the company, which at the time increased employees’ wages and benefits.

Regarding the above report, Autokiniton refuses to comment.

Currently, Autokiniton has not yet applied to the State of Michigan or the City of Detroit in accordance with statutory requirements for plant closure and mass layoffs, nor has it complied with the Worker Adjustment and Retraining Notification (WARN) Act.

UAW representatives are expected to meet with Autokiniton management to discuss the possibility of transferring employees to other factories, as well as severance compensation plans. According to information on Autokiniton's official website, the company currently operates more than 24 factories in the United States, Mexico, India, and Brazil, with 11 production sites located in Michigan alone.

Autokiniton was established in 2018 through a deal jointly formed by former Metaldyne CEO George Thanopoulos and private equity firm KPS Capital Partners.

The closure of Autokiniton’s stamping plant in Oakland will be the latest blow to unions in the metal supply chain sector. Earlier this month, UAW President Shawn Fain led a rally protesting layoffs at the steel plant in Dearborn, Michigan, and called on American steel manufacturer Cleveland-Cliffs to resume production. However, the CEO of Cleveland-Cliffs stated that the plant will only reopen once the weak automobile production improves.