Metro Detroit Automotive Supplier Announces Layoffs

STERLING HEIGHTS, MI — Kern J.G. Enterprise Inc., a parts supplier to Ford Motor Co., is permanently laying off more than 150 people from its Sterling Heights factory on Saturday, according to a Worker Adjustment and Retraining Notification (WARN) notice filed with the state.

The company cited "unforeseeable business circumstances" that permanently affect 156 workers, mostly machine operators and line leaders, according to the WARN notice.

A Kern spokesperson told the Detroit Free Press that Ford canceled its business dealings with the supplier in favor of companies based in India and other U.S. states.

Ford's decision comes as CEO Jim Farley emphasized the automaker's commitment to maintaining a strong domestic automotive industry amid trade talks between the U.S., Canada and Mexico, the Detroit News reports.

"Ford does not discuss confidential contracts or relationships with individual suppliers," Ford said in a statement to the newspaper. "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."

Kern was founded in 1967 when it opened a 2,800-square-foot building in Madison Heights with seven workers, according to the company's website.

The family-owned business eventually moved to Sterling Heights where workers make components for drivetrain and powertrain assemblies, chassis frames and other parts.

The company lists Ford as a major supplier. Other suppliers include BorgWarner Inc. and Dana Inc.

Patch has reached out to Kern J.G. Enterprise Inc. for more information about the layoffs and will update this story when we hear back.