After 17 years in operation, Brose Canada says it will downsize its London, Ont. facility by the end of next year, laying off most of its onsite workers and impacting hundreds of positions.
The North American arm of the German auto parts giant Brose Group says the move comes “with deep regret” and is “due to a combination of internal and external factors.”
Workers at the 17,500 square-metre facility were informed of the news Thursday morning. The plant employs more than 400 people, producing seat adjusters and components for Chrysler, Ford and Volkswagen, according to its website.
“This decision will eliminate most of the onsite positions, more than 300 roles, by the end of 2023 as seat production lines transition from London to other locations,” Wilm Uhlenbecker, president of Brose North America, said in a statement.
Uhlenbecker said the decision was not easy, and came in response to “key customer manufacturing and sourcing strategy shifts” that directly impacted the plant.
“Cost priorities, parts shortages, lowered production volumes and other market turbulence led to Brose’s decision to end seat production in London,” he said.
“As a company with values rooted in family, respect and teamwork, we recognize these cutbacks are painful. We took every measure to protect employees and will provide support to all those impacted during this difficult transition.”
Annaig LeCloarec, North American communications manager for Brose Group, said in a statement to Global News that the London facility would be downsized to a stand-alone press shop with approximately 40 workers once seat production ends next year.
“The more than 300 employees affected by the relocation of seat production will receive individual support from Brose,” LeCloarec said.
“Options will include continued employment at other locations in North America for eligible employees or assistance with career reorientation.”
Officials with the London Economic Development Corporation (LEDC) said the news was unfortunate but not surprising given the issues facing the global automotive industry.
“We will work with Brose and the impacted workforce over the next year to help transition to other growing employers in our area,” read a statement LEDC President and CEO, Kapil Lakhotia, who noted the dozens of companies with job postings on their manufacturing jobs portal.
Announced in 2003, the $81-million plant first opened in 2005 along Max Brose Drive — named after Brose’s founder — in the city’s southeast, providing roughly 350 jobs.
At the time of its announcement, Gerry Macartney, then the head of the London Chamber of Commerce, said the plant was the city’s biggest manufacturing announcement since General Motors Diesel, later Electro-Motive Canada, a half century earlier.
The facility expanded in 2010 at a cost of $20 million, adding 150 positions and a new production system to supply BMW, Chrysler, Ford, Mercedes, Nissan, Subaru and Suzuki, according to a London Free Press report at the time. The plant also supplied door panels for Ford’s Oakville facility.
In 2014, the plant brought on 20 new workers with the help of a $1-million provincial grant. At the time, it employed more than 700 people.
The plant weathered several economic storms over the years, including the late-2000s financial crisis and recession, and Chrysler’s 2009 restructuring.
In 2019, roughly 100 workers were laid off from the plant in response to changes in the market and shifting customer demands.
The downsizing of the Brose plant comes as Ontario sees a wave of electric vehicle-focused auto investments totalling upwards of $16 billion over the last two years.
Premier Doug Ford has previously spoken about wanting to establish Ontario as a leader in each step of the electric vehicle process, from the critical minerals needed for the batteries to assembly.
Earlier this year, GM announced it would transform its CAMI Assembly plant in Ingersoll to produce its BrightDrop electric commercial vans, becoming Canada’s first all-EV manufacturing facility.
In March, auto parts giant Magna unveiled a plan to open an electric vehicle parts plant in Chatham-Kent. A large-scale EV battery plant is also set to open in Windsor.
— with files from The Canadian Press
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