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…