by Elizabethtown, KY — A major car parts manufacturer is shutting down its Elizabethtown plant, leaving 450 employees without jobs by the end of the year. Akebono Brake Corp., a Japanese automotive brake maker with U.S. headquarters in Michigan, confirmed the closure in a notice filed with the Kentucky Career Center on October 3.
According to the company, the workforce reduction begins December 5 and will continue through year’s end until the plant fully closes.
“The workforce reduction/layoffs are the result of a decline in Akebono’s U.S. business and are expected to be permanent,” said Plant Manager Chris Cooper in a letter filed under the Worker Adjustment and Retraining Notification (WARN) Act.
35 Years of Operation Coming to an End
Akebono first announced its intent to close the Elizabethtown plant in October 2023, ending 35 years of operation in Hardin County, about 90 minutes west of Lexington.
Company President and CEO Yasuhiro Miyaji told the board at the time that Akebono had “resolved to reduce the business of its U.S. subsidiary” by closing one of its two remaining manufacturing facilities. The decision follows a longer-term restructuring plan that began in 2019, when Akebono shut down its plants in Tennessee and South Carolina.
According to The Lexington Herald-Leader, Akebono will retain its Glasgow, Kentucky brake production plant, which remains operational.
Community and Economic Impact
The phased closure has given local officials and workforce agencies some time to respond. Rick Games, President and COO of the Elizabethtown-Hardin County Industrial Foundation, said the community has been helping affected workers transition to new careers.
“The phased-out plan has allowed the community to aid workers in finding similar jobs nearby or pursue additional training to make a career switch,” Games said when Akebono first announced its departure.
Most of the employees being laid off are production associates and production group leaders, according to the company’s filing. The Elizabethtown facility is non-unionized, and no bumping rights exist for employees.
Once all 450 employees are permanently laid off, the plant at 300 Ring Road will officially close.
Broader Industry Context
Akebono, a global leader in automotive brake and noise-reduction technology, supplies major automakers including Toyota, Nissan, Honda, Mitsubishi, Ford, and General Motors. The company currently employs about 5,350 people worldwide, according to its website.
The plant closure comes amid broader challenges in the U.S. automotive manufacturing sector. In September, Akebono also laid off more than 50 employees from its engineering center in Michigan, according to the Detroit Free Press. That “mass layoff,” which began October 1 and ends December 1, affects engineers, lab technicians, analysts, and designers.
“Our U.S. business has continued to experience a decline in demand,” the company stated in its notice, citing the ongoing need to consolidate operations.
The Changing Landscape of Kentucky’s Auto Industry
The closure comes at a time when Elizabethtown and the surrounding region are undergoing rapid change in the auto sector. The area is home to the massive BlueOval SK battery plant in nearby Glendale, a joint venture between Ford Motor Co. and South Korea’s SK On. The new facility, expected to become the largest EV battery plant in the world, began commercial production earlier this year.
In 2023, motor vehicles and auto parts were Kentucky’s top export products, generating $5.4 billion in sales, according to data from the Kentucky Cabinet for Economic Development.
Workers Face Uncertain Future
While the community continues to assist displaced employees, many remain uncertain about their next steps. Akebono’s human resources coordinator listed in the WARN notice was unavailable for comment on the company’s long-term support for affected workers.
Local economic leaders remain hopeful that nearby facilities, including BlueOval SK, can absorb some of the skilled workforce leaving Akebono.
What are your thoughts on the plant closure and its impact on Kentucky’s auto industry? Share your views in the comments below.
