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Motorola’s Texas manufacturing unit to be closed down by the end of the year

Motorola Fort Worth

Google opened the Fort Worth, Texas unit for Motorola last year for the Moto X. It is now being heard that this unit will be shut down by the end of the year as they hand over the reins of the company to Lenovo. This manufacturing unit employs 700 workers currently and will mean bad news for the “Made in the USA” tag which was Motorola’s USP during the Moto X launch last year.

The Motorola CEO, Rick Osterloh has said that the decision to sell the unit in Texas was taken independently and doesn’t have anything to do with the Lenovo acquisition. The main factor responsible for the closure of this unit is said to be the faltering sales of the Moto X which reportedly didn’t meet expectations.

The primary reason behind having a manufacturing plant in the U.S. was to expedite production meant for the American consumers. But considering the relatively high labor and shipping costs in the country compared to regions like China, this idea wasn’t feasible in the long run. At its peak, the unit employed over 3,800 employees with most of them contracted out of Flextronics International Ltd.

Source: WSJ

Via: 9to5Google

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