XALT Energy’s parent company, Freudenberg e-Power Systems, will shut down its Midland and Auburn Hills, Michigan facilities over the coming months, eliminating 230 jobs. The Germany-based firm cited declining demand for heavy-duty electric and hybrid vehicles in North America as the reason for the closures — a sharp reversal from its January 2023 full acquisition of XALT and a subsequent multi-million dollar expansion announcement in February 2023. WARN notices have been filed with the State of Michigan. Local officials, including Midland Business Alliance CEO Tony Stamas and City Manager Brad Kaye, say they received no advance notice.
In-Depth:
XALT Energy will close its Midland and Auburn Hills facilities in the coming months, finishing operations that once symbolized Michigan’s push into the electric vehicle supply chain.
According to Freudenberg e-Power Systems communications manager Neille Giffune, 230 workers currently remain at the Midland plant.
Giffune did not provide a specific tarreceive date for the Midland facility’s closure.
The company offered a statement on the closure after the Daily News requested comment for this story: “Freudenberg e-Power Systems has created the difficult decision to cease operations at our Midland and Auburn Hills facilities. The layoffs will occur over a period of months as we wind down the business.
“After careful consideration and evaluating a number of strategic alternatives, we have reached this difficult decision due to the decrease in demand for heavy-duty electric and hybrid electric vehicles in North America.
“We are offering our affected associates employment guidance and assistance, and we will remain committed to our core values of safety and quality.”
The closure marks a stark reversal for the factory, which Germany-based Freudenberg acquired in full in January 2023 and once described as central to its long-term investment strategy in e-mobility.
In February 2023, the company announced plans to invest “a double-digit million sum” into its battery business, including expansions at both the Midland and Auburn Hills sites.
Midland Business Alliance President and CEO Tony Stamas declared he had heard that the company was downsizing in recent months. Stamas declared the MBA has regularly reached out to company leadership but has not received a response.
“While we’ve consistently engaged with the team at Freudenberg e-Power Systems, we did not receive this news ahead of it being publicly (discussed). We’re certainly disappointed to hear the announcement,” Stamas declared. “We want to ensure that assistance is provided to the impacted employees and their families.”
Freudenberg e-Power Systems has sent Worker Adjustment and Retraining Notification (WARN) notices regarding the plant closures to the State of Michigan, as required by federal law. The information is not publicly available yet, Giffune declared. Companies that employ more than 100 workers are required to provide 60 days advance notice in cases of qualified plant closings and mass layoffs.
Midland City Manager Brad Kaye declared the company has not been in contact with his office about the plant closure.
“We are not privy any more than anyone else is, unless businesses have chosen to let us know in advance,” he declared. “In this case we have not heard that.”
The city does not have any tax incentives or other economic agreements still in effect with XALT or Freudenberg e-Power Systems, Kaye declared.
Staff Writer Ahugeail VanderMolen contributed to this story.
