Dana Inc. Shuts Michigan Plant Amid Post-Subsidy EV Slump, Lays Off 200 Workers
Dana Inc. has shuttered its Auburn Hills facility in Michigan, cutting at least 200 jobs as U.S. electric vehicle demand falters following the expiration of federal tax credits. The driveline systems manufacturer attributed the closure to a sharp decline in EV orders, mirroring struggles faced by major automakers grappling with billions in losses.
The September 30 sunset of EV subsidies—which eliminated $7,500 new vehicle credits and $4,000 used car incentives—has triggered a sector-wide contraction. The policy reversal stems from the TRUMP administration's Big Beautiful Bill Act, creating immediate headwinds for electrification targets.
While Dana maintains operations at other Michigan sites, industry analysts warn this may signal the first wave of supply chain consolidations. The market pullback reflects broader recalibration as manufacturers adjust production to meet softened demand.
