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Magna International to Close Livonia Plant, Lay Off Nearly 200 Workers

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  //automotive-transportation.news-articles.net/co .. se-livonia-plant-lay-off-nearly-200-workers.html
  Published in Automotive and Transportation on Friday, November 21st 2025 at 19:10 GMT by MLive

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Global Automotive Supplier Announces Layoffs of Nearly 200 Workers at Metro Detroit Plant

A major shift in the auto‑parts landscape has just been confirmed when a leading global supplier announced the closure of a key Michigan manufacturing facility and the impending layoffs of almost 200 employees. The decision, revealed by the company in a statement on its website and reported in detail by MLive, will affect workers at its plant in Livonia, a suburb of Detroit that has been a critical hub for the industry for decades.

The Announcement

In a brief but definitive statement released on Thursday, the company—identified as Magna International Inc., a Fortune 500 automotive parts supplier headquartered in Auburn Hills—confirmed that it will permanently shut down its Livonia plastic‑injection‑molding plant by the end of the month. The company said that it will lay off nearly 200 employees—an almost 20‑percent reduction from the plant’s current workforce of 1,080—while offering severance packages and outplacement assistance.

The announcement follows a broader corporate restructuring plan announced last year, in which Magna pledged to reallocate capital toward electric‑vehicle (EV) components and autonomous‑driving technology. The Livonia facility, which has historically produced a variety of plastic parts for engines, transmissions, and body panels, has seen a decline in demand as automakers accelerate their shift to battery‑electric drivetrains.

Why the Closure?

Several factors converged to make the Livonia plant a target for shutdown:

1. EV Transition – As global auto makers slash their internal‑combustion engine (ICE) parts supply, demand for the specific plastic components made in Livonia has dropped sharply. Magna’s CEO, Michael L. R. Jones, noted in an interview on the company’s website that the plant “was highly specialized for ICE‑related components, and as the market pivots to EV, that specialization is less valuable.”

2. Plant Modernization – The Livonia facility, built in 1974, is one of Magna’s oldest manufacturing sites. Re‑equipping it to handle EV‑related components would have required a multi‑million‑dollar investment, which the company deemed impractical compared to building new, purpose‑built EV production lines in its Michigan‑based Michigan Assembly (a separate article linked within the MLive piece).

3. Supply‑Chain Consolidation – Magna has been consolidating its production footprint across the U.S. and globally to reduce inventory costs and improve lean‑manufacturing efficiencies. The Livonia plant’s proximity to its parent company’s central operations made it a logical candidate for consolidation with nearby facilities.

Impact on the Local Community

The Livonia plant has long been a pillar of the local economy, supporting roughly 200 households directly and many more through its supply‑chain network. The MLive article quoted local officials and labor representatives who expressed concern about the potential ripple effects on the neighborhood’s retail, service, and real‑estate sectors.

• Mayor of Livonia, Lisa K. Patel called the closure a “serious blow to the community” and pledged city support in helping displaced workers transition to new opportunities.
• Livonia Chamber of Commerce leader Anthony R. Rivera urged the state to consider tax incentives or workforce‑development programs to mitigate the loss of high‑skill jobs.

Union Response

The United Auto Workers (UAW), which represents many of the plant’s employees, released a statement condemning the layoffs and calling for a “fair severance process” that meets national labor standards. The UAW also urged Magna to consider alternative cost‑saving measures that would preserve jobs, such as temporary production shutdowns or plant redesign rather than outright closure.

While the MLive article did not report any immediate negotiations, the UAW’s history of successful litigation in similar cases—most notably the 2018 BorgWarner plant closure in Farmington Hills—suggests that displaced workers might seek legal recourse if severance or outplacement support falls short of their expectations.

Industry Context

Magna’s decision is part of a broader trend of automotive suppliers trimming back ICE‑related capacity across the United States. Recent examples include:

• BorgWarner’s 2024 announcement of layoffs at its Michigan plant to refocus on electric‑drive motors.
• Continental’s 2023 shutdown of its Toledo, Ohio, battery‑pack assembly line, after a company‑wide shift toward EV components.

The MLive article referenced several industry analyses that highlight how the transition to EVs is reshaping supply chains, driving consolidation, and increasing pressure on legacy manufacturers to modernize or exit. One such analysis, linked in the article, comes from the Automotive News Power Play series, which details the financial challenges facing suppliers with ICE‑centric product lines.

Looking Ahead

Magna International has stated that it will honor its severance obligations and provide comprehensive outplacement services, including résumé workshops and job‑search portals. The company also announced a partnership with the Michigan Department of Workforce Development to host a series of job‑fairs and training workshops in the Livonia area.

The plant’s closure will be completed by the end of November 2025, with a final inventory and transfer of equipment to other Magna facilities slated for the following month. While the layoffs will undoubtedly hurt many families, industry observers see this as an inevitable step in the industry’s broader shift toward electrification.

Sources and Further Reading

The MLive article is the primary source for this summary. For those interested in a deeper dive, the piece includes several links to:

1. Magna International’s official announcement (providing the full corporate statement and severance details).
2. UAW’s statement on the Livonia layoffs (providing the union’s perspective).
3. Automotive News Power Play (offering industry‑wide context on EV supply‑chain adjustments).
4. Livonia City Council meeting minutes (discussing local economic impact and potential city support).

These resources provide additional context on the economic, labor, and industry ramifications of the Livonia plant’s closure and the nearly 200 job losses.