Dakkota to close Detroit plant, cutting 397 jobs

Dakkota Integrated Systems will close its instrument-panel plant on Detroit’s east side, laying off 397 employees by December 31, 2026, according to a notice filed with Michigan’s Department of Labor and Economic Opportunity. The state cited reduced business as the reason for the closure, which affects the facility at 5905 Van Dyke Avenue.

The plant, which began operating in 2020, supplied cockpit modules for the Jeep Grand Cherokee and Dodge Durango. Although the vehicles will continue to be produced at nearby Stellantis assembly lines, Dakkota lost contracts for the two SUVs, leading to the shutdown. A second Dakkota site in Clinton County will also close, eliminating an additional 67 jobs.

The Detroit facility received significant public support, including a $1.5 million state grant, a 15-year tax break, and federal tax-credit financing. The plant was marketed as a key supplier win following Fiat Chrysler’s $1.6 billion investment in the Detroit Assembly Complex, though it is closing more than eight years before its tax designation expires.

Read the full story at theautowire.com.