In October 2025, Dana Thermal Products closed its electric vehicle parts factory in Auburn Hills, Michigan, cutting nearly 200 jobs. The plant opened in 2022 with a $44 million investment and $2.5 million state grant to make aluminum cooling plates for EV batteries.
The closure happened just days after federal EV tax credits expired on September 30, 2025. Workers received less than one day’s notice before losing their jobs. “It’s hard. I’m a single mom. We’re wondering, ‘What are we going to do? How do we pay rent?'” said Kassandra Pojok, one of the affected workers, to Fox 2 Detroit. The timing confused many people because U.S. EV sales actually hit record highs in 2025.
Cox Automotive reported 438,487 EVs were sold in the third quarter—a 30% increase from the year before. September alone saw EVs reach 11.7% of the car market. But Dana faced an “unexpected and immediate reduction in customer orders,” showing that strong consumer sales don’t always help every supplier.
Auto Industry Feels the Pain
Dana’s closure is part of a bigger problem hitting Michigan. Two other plants run by International Automotive Components Group also closed in October, eliminating 250 more jobs. Nearly 450 manufacturing workers lost their jobs across three Michigan counties in one month.
The troubles came after President Trump’s “One Big Beautiful Bill” Act ended the $7,500 federal EV tax credit. Ford CEO Jim Farley warned that EV sales could drop to just 5% of total car sales without government help. Analysts predict U.S. EV sales will fall by about 27% in 2026. Major automakers are struggling.
General Motors took a $1.6 billion financial loss and stopped EV production at its Tennessee plant. Ford’s F-150 Lightning sales dropped 26%, while E-Transit van sales fell nearly 90%. Rivian laid off 600 workers in October. ING economists predict U.S. EV market share will shrink from 10% in 2025 to 8.5% in 2026.
What Happens Next
This isn’t Dana’s first Michigan plant closure. The company shut down another EV plant in St. Clair in 2023, costing 200 jobs. Dana’s sales dropped from $2.74 billion in early 2024 to $2.35 billion in the first quarter of 2025. CEO R. Bruce McDonald is closing plants and selling assets to save money.
Dana will keep its traditional car parts factory in Auburn Hills, moving back toward gas-powered vehicle parts. Glenn Stevens of MichAuto called the situation a “collision of market volatility, EV adoption uncertainty, tariffs, and supply chain shortages.”
Labor lawyers are questioning whether Dana followed the WARN Act, which requires 60 days’ notice before mass layoffs. The end of federal tax credits and the 45X advanced manufacturing credit created what industry groups call “supply chain chaos.”
Experts expect the EV market to stay weak through 2026, with sales around 8% of total vehicles. Car companies are trying new leasing deals to make up for lost tax credits, but experts say these are temporary fixes.