Marelli Automotive Lighting USA plans to close its factory in Clarkston, Michigan, affecting 263 employees.
The closure is due to "a number of prolonged challenges" including downward trending vehicle volumes "exacerbated by COVID-19" and new technology from nontraditional suppliers, Marelli said in a WARN notice filed July 27 with the Michigan Department of Labor and Economic Opportunity.
Production will end in January, it said in the notice.
The supplier is not a part of a union, the notice said.
"As part of Marelli's ongoing strategy to strengthen its market position, we will consolidate our U.S.-based automotive lighting manufacturing in a single, existing locations in Pulaski, Tennessee," the supplier said. "This move will increase efficiency, enabling the company to become more cost competitive while meeting customer demand."
Marelli did not immediately respond to request for comment.
In March, the supplier said it would consolidate three metro Detroit offices to a new North American headquarters near Detroit after Fiat Chrysler Automobiles sold the parts unit Magneti Marelli, renamed Marelli, to Japan's Calsonic Kansei in a $6.5 billion deal last year.
Later that month, Marelli said it would temporarily suspend all operations in North America as the coronavirus pandemic intensified.