Kern J.G. Enterprise Workforce Reduction in Sterling Heights
A Ford Motor Co. supplier in Sterling Heights, Michigan, has filed a notice with the state indicating it will permanently lay off more than 150 employees because a portion of its business is relocating to India, a source familiar with the automaker’s plans told the Detroit News.
Kern J.G. Enterprise Inc. filed a Worker Adjustment and Retraining Notification citing “unforeseeable business circumstances” affecting 156 workers, according to state filings. While some operations are transferring overseas, other work will remain in the United States, noted the individual familiar with the sourcing strategy who was not authorized to speak publicly.
Ford Maintains Domestic Manufacturing Amid Trade Negotiations
The workforce reduction arrives as Ford CEO Jim Farley stresses the company’s dedication to domestic manufacturing and the preservation of a robust local automotive sector amid ongoing trade negotiations involving the United States, Canada, and Mexico. Ford retains a larger hourly autoworker presence in the U.S. than any competitor, assembling 83% of its domestic vehicle sales locally last year and importing fewer than one vehicle for every six built domestically, as reported by the Detroit News.
“Ford does not discuss confidential contracts or relationships with individual suppliers,” the automaker stated regarding the supply chain shifts. “Our sourcing decisions consider quality, delivery, financial stability and operational risk so we can keep our plants operating and delivering vehicles to customers. Ford is committed to American manufacturing and jobs. Reliable suppliers are essential to protecting production and the thousands of American jobs that depend on our plants operating.”
Corporate History and Facility Expansion in Macomb County
Founded in Madison Heights in 1967 with seven employees, Kern is a family-owned enterprise specializing in drivetrain and powertrain assembly components, chassis frames, and related automotive parts, according to the company’s website cited by the Detroit News. The firm relocated its operations to Sterling Heights during the 1990s and subsequently expanded its production facility to nearly 200,000 square feet.
Corporate records show Ford as the only major automaker listed among Kern’s clientele, which also features parts producers BorgWarner Inc. and Dana Inc., alongside various aftermarket component manufacturers. Public filings with the Michigan Department of Labor and Economic Opportunity list the effective layoff date for the affected workers as August 17.
Broader Scrutiny Over Global Supply Chains
The supplier reduction coincides with broader political scrutiny directed at Ford regarding its international supply chain connections. U.S. Transportation Secretary Sean Duffy criticized the automaker in September over its partnerships with Chinese entities and the timeline for ending the import of Lincoln vehicles from China by 2030, according to coverage by the Detroit News.