Automotive supplier Detroit Axle will be closing its warehouse in Ferndale, Michigan, and letting go of 102 employees, citing recent U.S. import tariff policy, reports Detroit Free Press.
Founded in 1990, Detroit Axle sells and distributes parts like CV axles, wheel hub and bearings, suspension and chassis parts, complete strut assemblies, and shock absorbers to automakers and aftermarket customers.
The company will be closing its warehouse on Eight Mile Road in Ferndale, and letting go of 102 employees, including front counter sales, supervisors, shipping personnel, box makers, drivers, and more. Detroit Axle currently employs 201 to 500 employees, according to its LinkedIn page.
This comes after the company filed a complaint with the U.S. Court of International Trade in June over recent tariffs. According to Detroit Axle, it relies on contracts with Chinese manufacturers for certain parts no U.S.-based companies offer, and that increased prices would be too much for the company to absorb or for its customers to take on.
“The decision to close this facility is due to unforeseen circumstance, specifically the sudden imposition of government tariffs, which have significantly disrupted our supply chain and sharply increased the costs of goods,” said Detroit Axle CEO Mike Musheinesh. “These changes have had a direct and unanticipated impact on our warehouse operations, making it financially unsustainable to continue operating this facility.”
