Webasto Americas Temporarily Halts Production in Michigan, Lays Off 134 Employees

According to foreign media reports, Webasto Americas, a supplier of automotive sunroof systems, has announced that its New Hudson plant in western Detroit, Michigan will temporarily cease production and plans to lay off 134 employees due to a decline in automotive production leading to insufficient market demand for its products. This is the latest round of large-scale layoffs by the company in response to production cuts. A Webasto spokesperson, Debra Ortisi, informed Crain’s Detroit Business that the production operations at the New Hudson plant will be consolidated into the plant located in Plymouth, Michigan. According to a notice released on July 8 to the state of Michigan, the layoffs are expected to take effect on August 19. Webasto Americas is a subsidiary of the German Webasto Group. According to their official website, Webasto’s major clients include Ford Motor Company, for which they supply sunroofs for models such as the Bronco and Mustang. Additionally, Webasto supplies components to Stellantis and General Motors, including for the Chevrolet Corvette and Jeep models. Earlier this year, in January, Webasto announced the closure of its facility in Rochester Hills, Michigan, affecting 244 employees. At that time, spokesperson Debra Ortisi stated that an analysis of Webasto's business network in the Americas indicated that continuing operations at the plant, established in 1974, was no longer economically viable. A few months prior, the company had cut 218 jobs after canceling the third shift at its Plymouth and New Hudson plants. The company explained that significant investment was needed to continue producing roof systems competitively at the Rochester Hills facility, leading to the difficult decision to close the plant. They also noted that while demand for their products in the North American market is increasing, they are currently facing rising cost pressures, similar to many automotive parts suppliers.