Akasol to Close Two Michigan Plants, Lay Off 188 Workers

News Summary

Akasol, Inc. has announced the closure of its plants in Hazel Park and Warren, Michigan, effective April 14, 2023, resulting in the layoff of 188 employees. The decision comes amid challenges in the electric vehicle battery market, following BorgWarner’s acquisition of Akasol in 2022. Battery production is set to shift to a facility in Seneca, South Carolina. The closures reflect broader trends affecting the electric vehicle industry, raising concerns for the local communities that depend on these jobs.

Akason to Close Two Michigan Plants, Lay Off 188 Workers

In a **stunning turn of events**, Akasol, Inc. has officially announced plans to close two of its Michigan plants, located in Hazel Park and Warren. The closures are set to take place on April 14, 2023, and will lead to the permanent layoff of 188 employees. It’s certainly a tough situation for all involved, as these hardworking individuals have now been informed about their last working day and the finality of their layoffs.

What Led to the Closure?

Akasol is a **Germany-based company** that specializes in high-performance lithium-ion battery systems specifically designed for electric and hybrid vehicles. Following its acquisition by BorgWarner in 2022, there were high hopes for Akasol’s contributions to the growing electric vehicle market. But the reality of the situation is proving to be quite different, as market analysts have pointed out that the electric vehicle battery sector is currently facing some **serious obstacles**.

Just under five years ago, the Hazel Park facility celebrated its grand opening on the site of the former Hazel Park Raceway, which closed in 2018. Unfortunately, this once-promising plant will now join the ranks of many others and face permanent closure. The neighboring Warren plant is also facing the same fate, signaling a significant shift in Akasol’s operational strategies.

Relocation of Production

So, where is the battery production going? A BorgWarner representative has indicated that all battery manufacturing activities will be **transferred** to an existing facility in Seneca, South Carolina. This Seneca plant is anticipated to significantly ramp up production in response to the growing demand for eMobility solutions, as the electric vehicle industry seeks to become a significant player in the automotive market. In fact, BorgWarner has a goal for electric vehicle enterprises to account for around 45% of its total revenue by 2030 as part of their ambitious Project Charging Forward.

Impact on Workers and Local Communities

The job cuts and subsequent plant closures have sent shockwaves through the local communities of Hazel Park and Warren. Akasol made sure to keep the local officials and Michigan’s Department of Labor and Economic Opportunity in the loop regarding these upcoming job losses. As the WARN Act requires companies with 100 or more employees to alert state authorities about such changes, Akasol has done its part to follow procedure despite the tough news.

Prior to the acquisition, Akasol boasted a workforce of over 300 full-time employees across three facilities in Germany and one in the United States. Following the merger with BorgWarner, Akasol was expected to enhance and expand upon its existing battery production capabilities. However, these dreams have now been dashed as the company grapples with the changing landscape in the electric vehicle battery market.

A Larger Trend?

The changes at Akasol are symptomatic of a larger trend affecting various businesses in the electric vehicle battery sector. As companies strive to innovate and meet the demands of a transitioning automotive industry, they’re consistently faced with challenges that can disrupt operations and impact job security.

As Akasol prepares to finalize its transition by closing its Hazel Park and Warren plants, many are left wondering about the future of electric vehicle manufacturing in Michigan. The state has long been a cornerstone of the automotive industry, and with these developments, the landscape might be shifting faster than anyone expected.

Deeper Dive: News & Info About This Topic

• Detroit Free Press: Akasol Lay Offs
• Electrive: Akasol Orders Machines
• Detroit Free Press: Akasol Battery Facility
• Wikipedia: Electric Vehicle Battery
• Google Search: Akasol Michigan closure

Author: HERE Northville