Detroit Axle lays off 102 employees amid supply chain crisis

In the United States, specifically in Michigan, Detroit Axle has announced the impending closure of its warehouse located in Ferndale, effective August 25, 2025. This decision comes as a direct result of significant disruptions in the automotive parts supply chain, primarily attributed to recent changes in U.S. import tariff policies. The company filed a WARN Act notice with the Michigan Department of Labor and Economic Opportunity, stating that 102 employees will be laid off, and notably, none of the affected positions are union jobs. The challenges facing Detroit Axle are rooted in prior tariff implementations that have hindered its operations, prompting the company to seek alternative sourcing options. In June 2025, the firm lodged a complaint with the U.S. Court of International Trade, emphasizing that the modifications in tariff policy posed an existential threat to its business model. The complaint highlighted how these developments could potentially derail the success the company has experienced over thirty-five years of operation. To adapt to the evolving trade landscape, Detroit Axle had previously attempted to mitigate the impact of tariffs, notably by redirecting some of its supply chain processes through a distribution facility situated in Mexico. This move was intended to alleviate pressures stemming from U.S. tariffs on Chinese imports, and it had permitted the company to expand its workforce in Michigan in response to improved operations. However, despite these measures, the current environment has severely strained operations, resulting in a near standstill for the company's facility in Mexico. The ongoing debt and challenges to its supply chain illustrate a considerable risk to Detroit Axle’s future and operational success. As the company navigates through these tumultuous changes, it is unlikely that new suppliers can be found outside of China without significantly affecting its market position. The implications of this closure extend beyond immediate job losses, as the firm's future viability on consignment channels such as Amazon and eBay could be jeopardized significantly due to the loss of top-selling status in the online marketplace.