IAC Group Leads Michigan Auto Supplier Cuts, Nearly 450 Jobs Lost

International Automotive Components (IAC Group) is closing or cutting back operations at key Michigan facilities, leading a broader supplier pullback that will cost the state nearly 450 manufacturing jobs. The cuts come as Ford Motor Company prepares to end production of the Escape and Corsair SUVs, a move that is sending shockwaves through the local supply chain. The layoffs are expected to begin in December.

According to a report from the Detroit Free Press, the supplier shakeup involves three separate plants. IAC Group confirmed it will idle operations at its Mendon and Alma locations, while a third facility operated by Dana Thermal Products in Auburn Hills is also shutting down. Union leaders point to the sudden shift in Ford’s production schedule as the main cause for the closures.

Key Facts

• Locations Hit: IAC plants in Mendon (178 jobs) and Alma (68 jobs), plus a Dana facility in Auburn Hills.
• The Trigger: Ford is stopping production of the Escape and Corsair for a 10-month retooling period.
• Effective Date: Layoffs are scheduled to start on or around December 8, 2025.
• Source: Detroit Free Press, WTVB

The Ripple Effect of Retooling

The auto industry often sees job shifts when big car companies change their lineups, but this transition is hitting suppliers hard. Ford’s plan to stop making the Escape and Corsair models has left suppliers with no orders to fill. The IAC plant in Mendon, which makes interior parts like instrument panels, will lose 178 workers. Most of these workers are general laborers, though some skilled tradespeople are also affected.

In a letter to the state, company officials stated the job losses are permanent. This contradicts some early hopes that the layoffs might be temporary. The deeper issue is the 10-month gap before Ford launches its new models. For suppliers like IAC, keeping a full staff paid without work for nearly a year is not part of the plan.

Union Reaction and Future Outlook

Workers at the affected plants are represented by the UAW Local 503 in Mendon and USW Local 2-540 in Alma. Union representatives described the cuts as a direct result of the “major plant transition” at Ford. While the unions are working to help members find new spots or secure severance, the options are limited in the immediate area.

Experts say this kind of “automation” and process change is becoming more common. As car makers switch to electric vehicles or update their factories with robots, the companies that make the parts must also change. Sometimes, that means closing older plants instead of fixing them up. For the nearly 450 workers in Michigan, this industry shift means looking for new work right before the holidays.