Motorola Mobility to Close its Texas Smartphone Factory
Published on: 2nd Jun 2014
Motorola Mobility made a huge splash about its plans to bring smartphone manufacturing home to the USA from overseas factories, but has changed its mind and is closing its US factory.
The company is currently in the process of being sold to China's Lenovo, and may have decided that the PR benefits of having a USA based factory was simply not worth the extra cost.
"What we found was that the North American market was exceptionally tough," Motorola President Rick Osterloh told the Wall Street Journal.
The factory had hired 3,800 staff at its peak when the Moto X smartphone was launched, but slower than hoped for sales saw production reduced and staff slowly laid off.
Around 700 staff are left working at the Fort Worth, Texas factory, who will now also be made redundant.
Singapore-based electronics manufacturer Flextronics operates the plant on behalf of Motorola Mobility.
Even though the factory was just assembling components supplied by overseas factories, the added cost of the assembly process was seen as being not worth the cost simply to be able to stamp "Made in the USA" on the phone.