A nearly six-decade-old auto parts supplier in Sterling Heights is shutting its doors for good after Ford Motor Co. ended its business relationship with the company, triggering the permanent layoff of 156 workers. J.G. Kern Enterprises expects to close permanently, with the company filing a formal notice warning employees of the shutdown.
According to the Detroit Free Press, which first reported the closure, J.G. Kern Enterprises filed a Worker Adjustment and Retraining Notification with the state ahead of the layoffs. Under the federal WARN Act as enforced in Michigan, covered employers with 100 or more full-time workers must give at least 60 calendar days advance written notice to affected employees, local officials, and the state's dislocated worker unit before a shutdown impacting 50 or more workers, according to the State of Michigan.
A Supplier Built on Precision Drivetrain Parts
J.G. Kern Enterprises got its start in 1967 as a seven-person shop in Madison Heights producing military ordnance and automation parts, before relocating to Sterling Heights in 1990 and growing into a 152,000-square-foot CNC machining facility, per the company's own account on its website, J.G. Kern Enterprises. The company specialized in close-tolerance precision machining for drivetrain and powertrain assemblies, turning out components like transmission flanges, axle flanges, and slip yokes.
Those are exactly the kinds of parts that feed into the operations sitting just down the road. Sterling Heights hosts four major OEM automotive plants, including Ford's Van Dyke Transmission Plant and Sterling Axle Plant, alongside Stellantis assembly and stamping facilities, according to the City of Sterling Heights. Ford ranks among the city's largest employers, maintaining roughly 3,600 workers across its local axle and transmission operations, the city notes on its top employers page.
Financial and Labor Troubles Preceded the Shutdown
The collapse comes after a stretch of financial and legal strain for the supplier. Huntington Business Credit closed new credit facilities with J.G. Kern Enterprises in November 2024 to refinance existing corporate debt and fund ongoing working capital, according to a filing reported by Huntington Business Credit.
The company also spent years fighting federal labor regulators. The U.S. Court of Appeals for the D.C. Circuit enforced a National Labor Relations Board order against J.G. Kern Enterprises in March 2024, finding the manufacturer had violated federal labor law by delaying negotiations and unlawfully withdrawing recognition from its workers' union, per court records cited by Justia Law. The U.S. Supreme Court denied the company's petition for certiorari in October 2024, upholding the appellate rulings that required it to bargain in good faith with labor representatives, according to the Supreme Court of the United States.
J.G. Kern Enterprises had also carried a formal commercial relationship with Ford beyond manufacturing, having been listed as an eligible corporate partner in Ford's X-Plan Partner Recognition program, which offered its workforce discounted pricing on new Ford vehicles tied to its supplier status, according to Midwest Ford.
A Familiar Risk for Tier 2 Suppliers in Macomb County
The sudden shutdown underscores how precarious life can be for Tier 2 automotive suppliers whose survival hinges on a single OEM contract. Macomb County's automotive ecosystem includes more than 680 automotive and mobility companies, representing a sector gross domestic product of $12.2 billion as of 2024, according to Hoodline's prior reporting on the region's supplier base. Even within that sprawling ecosystem, losing one major customer proved enough to end J.G. Kern Enterprises' run entirely, forcing the company to permanently lay off its 156 employees in Sterling Heights.
