In November 2025, Yanfeng Automotive Interiors announced the permanent closure of its Romulus, Michigan manufacturing facility, eliminating 192 jobs and marking another significant contraction in America’s automotive heartland. The Shanghai-based supplier, ranked among the world’s top 20 automotive parts manufacturers, filed a Worker Adjustment and Retraining Notification (WARN) Act notice on November 7, with the plant set to cease operations by January 5, 2026. The timing—just weeks after the holiday season—underscores the mounting pressures facing traditional automotive suppliers as the industry undergoes fundamental restructuring.
Economic Pressures Reshaping the Sector
The automotive supply chain faces a convergence of challenges that have made legacy manufacturing facilities increasingly untenable. Manufacturing employment across the United States declined by 33,000 jobs throughout 2025 as the industry confronts softening demand and intensifying competition from lower-cost international producers. Production costs in Michigan run 30 to 40 percent higher than in Mexico, where Yanfeng operates multiple facilities, creating a stark economic calculus that favors consolidation and relocation.
The shift toward electric vehicle production has further complicated the landscape for traditional interior component suppliers. As demand for conventional vehicle interiors diminishes, retooling aging plants for new technologies becomes prohibitively expensive. For Yanfeng, the Romulus facility—designed for conventional production—represents a liability rather than an asset. The company determined that closing the plant and redistributing work to other facilities would prove more cost-effective than modernizing existing infrastructure.
Yanfeng’s Global Operations and Strategic Positioning
Yanfeng operates 240 production facilities across 20 countries and employs approximately 57,000 workers worldwide, generating $15 billion in annual revenue. The company specializes in vehicle interiors, seating systems, safety components, and cockpit electronics. Despite its substantial global footprint and North American headquarters located in Novi, Michigan—just 20 miles from Romulus—the supplier has prioritized cost optimization over regional employment retention.
This strategic calculus reflects broader industry trends. Major suppliers including Magna have already invested heavily in Mexican operations, establishing a pattern of consolidation that prioritizes labor cost reduction. While Yanfeng has not publicly specified where Romulus work will be transferred, industry analysts widely expect the operations to shift to lower-cost Mexican facilities.
Impact on Romulus and Affected Workers
Romulus, a city of approximately 24,500 residents, depends substantially on industrial employment. The closure will displace 192 workers including assembly operators, material handlers, and maintenance technicians who typically earned wages competitive with broader manufacturing sector standards. The WARN Act requires a 60-day notice before mass layoffs, providing workers roughly six weeks to prepare—a period that coincides with post-holiday economic uncertainty.
Michigan’s unemployment benefits extend for 26 weeks, offering temporary financial relief but limited long-term security. While state retraining programs including the Workforce Innovation and Opportunity Act exist, these initiatives cannot guarantee successful transitions into alternative employment. Many workers will struggle to secure comparable positions, particularly in a regional job market where new opportunities frequently offer substantially lower compensation than manufacturing roles.
Structural Vulnerabilities and Limited Protections
The Romulus facility is represented by the United Auto Workers (UAW) through Local 600, which has actively fought to preserve manufacturing jobs. However, despite union representation, Yanfeng made the closure decision unilaterally, without negotiating with employees or offering substantive relocation assistance.
The WARN Act, while mandating advance notice, provides no requirement for severance pay, retraining support, or relocation assistance. This regulatory framework offers workers notification but limited material protection against displacement. The absence of additional safeguards leaves many Romulus employees facing significant economic hardship.
Broader Implications for the Midwest
The Romulus closure represents a microcosm of larger transformations reshaping the American manufacturing landscape. Southeast Michigan, historically the nation’s automotive manufacturing hub, continues experiencing accelerating job losses as suppliers consolidate operations and shift production to lower-cost regions. The transition toward electric vehicle manufacturing, while potentially creating new opportunities, has not yet generated sufficient employment to offset losses in traditional supply chain operations.
Michigan’s industrial policy framework remains insufficient to counteract these structural shifts. As the region confronts ongoing manufacturing decline, policymakers face mounting pressure to develop strategies that either retain existing operations or facilitate worker transitions into emerging sectors. Without substantive intervention, the Midwest risks further economic deterioration in its manufacturing base.
Sources
Michigan Department of Labor and Economic Opportunity – WARN Notice Filing (November 7, 2025)
CBS News Detroit – “Global auto supplier to lay off 192 workers at Southeast Michigan plant” (November 24, 2025)
Detroit Free Press – “Romulus auto supplier announces layoffs. When jobs cuts take effect” (November 24, 2025)
CBS News National – “The U.S. is losing thousands of manufacturing jobs” (September 9, 2025)
Wikipedia – “List of the largest automotive suppliers” (May 2023, updated regularly)
U.S. Department of Labor – WARN Act FAQ (Ongoing resource)