Japanese brake maker, Akebono Brake Corp. is letting go of 48 people employed at its Akebono Engineering Center in Farmington Hills in a move that is expected to be permanent, the company said in Federal Worker Adjustment and Retraining Notification (WARN) filed this month with the Michigan Department of Labor and Economic Opportunity.
The notice said that in addition to the 48 employees at the location on 12 Mile Road, five more employees would also be laid off at the Akebono Brake Elizabethtown plant in Elizabethtown, Kentucky.
It is unclear how many total employees work at the Farmington Hills location, but the WARN notice characterized it as “a mass layoff.”
The layoffs will begin on Oct. 1 and end Dec. 1 and mostly impact engineering jobs, lab techs, analysts, designers and program managers, the WARN notice said. It said none of the employees is represented by a union and no bumping rights exist.
Akebono, founded more than 90 years ago and based in Tokyo, makes advanced brakes and noise solutions for cars. According to its website it employs 5,321 people globally and it’s U.S. headquarters is in Farmington Hills.
On its website, the company stated: “Our main (Original Equipment Manufacturer) customers include all Japanese manufacturers including Toyota, Nissan, Honda, Mitsubishi, and Isuzu. We also supply to a wide range of global manufacturers, including Porsche, GM, Ford, and Mercedes Benz.”
In its WARN filing to the state the company wrote: “This workforce reduction/layoffs are the result of a decline in Akebono’s U.S. business and are expected to be permanent.”
A call and an email to a company contact person listed in the notice, seeking more explanation about the reason for the job cuts, were not immediately returned.
More: Stellantis launches ‘comprehensive investigation’ after breach of customer data
More: Car buyers clamor for EVs as the clock ticks down to get the federal tax credit
According to Cox Automotive, new vehicle sales in the United States have remained robust this year. In a new vehicle sales forecast published on Aug. 27, Cox Automotive reported: “August’s monthly sales pace, or seasonally adjusted annual rate (SAAR), is forecast by Cox Automotive to reach 16 million in August, a slight decline from July’s robust 16.4 million level, but a large gain over last year’s 15.1 million pace.”
Additionally, sales of electric vehicles have surged in recent months as car buyers clamor to get in front of the expiring federal tax credit on the purchase of an EV. That tax credit expires in seven days on Sept. 30.