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Key auto parts maker closes factory, lays off 325 workers

Key auto parts maker closes factory, lays off 325 workers

The companies behind some of the biggest car brands do not make every component of their vehicles.

Instead, automakers rely on a vast network of suppliers to manufacture everything from seats and tires to semiconductors, windshields, door glass, and rear windows.

However, while people know names like Hyundai, Honda, or Ford, they rarely identify the major parts maker responsible for the windshields or glass components in these big-brand cars.

One of those behind-the-scenes suppliers is now closing a longtime U.S. factory and permanently laying off hundreds of workers.

Carlex Glass America plans to close its automotive-glass manufacturing facility in Vonore, Tennessee.

The closure stands out because Carlex is not merely an aftermarket windshield company. 

It is a major Tier 1 supplier that works directly with global automakers and manufactures original components installed in vehicles during production.

Carlex closes Tennessee factory, cuts 325 jobs

Carlex recently filed an official WARN notice with the state of Tennessee for a permanent layoff effective September 7.

The layoffs will affect 325 employees at the company’s facility at 77 Excellence Way in Vonore. 

Tennessee’s rapid-response team has been notified to coordinate employment and transition services for affected workers.

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Separately, Carlex announced that manufacturing operations at the plant are expected to conclude by the end of September. 

Production will continue through the transition to avoid disrupting customer deliveries.

The company attributed the decision to changing market conditions and customer demand rather than a broader withdrawal from Tennessee.

Carlex is not pulling back.

“To the contrary, we are substantially expanding operations in Nashville as part of this overall restructuring. As we do so, we will fully support our affected colleagues in Vonroe as they identify and pursue their next career opportunity,” said Ramzi Hermix, CEO, Carlex.

Workers may be considered for transfers to other Carlex facilities where positions are available. 

The company also said it would offer career-transition support, resume and interview assistance, and continued access to certain benefits following separation.

egon69 / Getty Images

Carlex supplies glass for major auto brands

Most drivers may never see the Carlex name prominently displayed on their vehicles, but its products can be critical to how those vehicles are built and repaired.

Carlex manufactures windshields, side windows, and rear windows for automakers and the replacement-glass market. 

The Vonore, Tennessee, plant is a complete glass-fabrication facility that produces windshields, sidelites, and backlites for original-equipment and aftermarket customers. 

Carlex identifies itself as an original-equipment supplier to manufacturers, including:

  • Ford
  • Toyota
  • Honda
  • Nissan
  • Hyundai
  • Subaru

The company also operates replacement-glass programs with Stellantis, the parent company of Jeep, Ram, Dodge, Chrysler, Fiat, and several other vehicle brands.

That does not necessarily mean that every model sold by those automakers comes with Carlex glass. 

Suppliers typically win contracts for particular vehicles, factories, or product programs.

Carlex’s relationship with Ford is particularly deep.

The Vonore plant opened in 1991 through a partnership with Ford Motor Co. 

Carlex took full ownership of the factory in 1995 and later acquired Ford’s former Nashville glass operations and aftermarket business in 2011.

Carlex also sells automotive glass under the Carlite brand, which is closely associated with Ford replacement parts.

Its SoundScreen acoustic windshields come standard on nearly all Ford and Lincoln vehicles, according to the company. 

Just weeks before announcing the Vonore closure, Carlex was named a 2026 Ford Supplier of the Year in the Crisis Management category for its performance and cooperation during Ford’s 2025 fiscal year. 

Carlex shifts production to Nashville

The factory closure appears to be a consolidation rather than a complete reduction of Carlex’s U.S. manufacturing business.

Carlex said the move is part of a wider restructuring intended to realign production with customer demand while expanding its Nashville operations.

The company has invested more than $55 million in Nashville to increase manufacturing capacity and support future growth.

Carlex said the expanded operation will include investments in automation, advanced manufacturing technology, and next-generation production capabilities. 

The changes are expected to increase efficiency and production flexibility across its original-equipment and replacement-glass businesses.

Carlex currently lists U.S. manufacturing or operational locations in:

  • Nashville and Lebanon, Tennessee
  • Auburn and Ligonier, Indiana
  • Troy, Michigan

This is in addition to the Vonore plant, which is scheduled for closure.

The company has also undergone significant changes in ownership in recent years.

Japan-based Central Glass, which owned Carlex US, agreed in 2022 to sell Carlex’s American and European businesses to investment funds managed by Atlas Holdings.

Carlex is now an operating company within the Atlas portfolio and remains focused on automotive glass manufacturing and distribution.

Auto suppliers face pressure

Carlex’s decision comes as the broader automotive industry adjusts to softer demand, changing production plans, and continued pressure to control costs.

A 2026 analysis from Bain & Company found that profitability has fallen sharply for global automakers from post-pandemic highs, prompting manufacturers to expand cost-reduction and efficiency programs that can also affect their suppliers.

Suppliers have generally remained more resilient, but they are still exposed to changes in automaker production volumes and sourcing decisions.

PwC’s 2026 automotive outlook said suppliers remain vulnerable to shifts in vehicle production and tariff pressures.

Meanwhile, stagnant sales volumes and higher costs are encouraging more consolidation, operational efficiency, and portfolio restructuring across the sector.

That matters for companies such as Carlex, whose factories and equipment are often built around demand from specific automakers, vehicle programs, and production locations.

When those volumes or sourcing strategies change, suppliers may need to move production, automate facilities, or consolidate work into fewer plants.

Carlex has not identified a lost customer or individual vehicle program as the reason for closing Vonore. 

The company has instead described the decision as a broader response to changing market dynamics and customer demand.

Carlex is closing a roughly 35-year-old facility while shifting resources toward Nashville, where it has invested more than $55 million to expand capacity, automation, and advanced manufacturing capabilities.

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