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Motorola shutting down Moto X plant in Texas

May 31 2014, 7:05am CDT | by , in News | Other Stuff

Motorola shutting down Moto X plant in Texas
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The employees have been downsized from 4000 to 700 and the factory will shut down later this year

We can surely remember the time when the ‘Moto’ was trending all over the world and it was given special treatment when Motorola opened a plant in Texas to build this very popular flagship. It has only been a year and the plant is already being shut down since the company wants to put an end to its US manufacturing operations.

These times are not in the best interests of the company and with the smartphone world growing tremendously with strong competitors, Motorola saw its undoing. As The Wall Street Journal claims, the employees at the company have been downsized from 4000 to 700. According to the company’s plan, the factory will be shut down by the end of this year.

Initially, the major reason for shifting to the US operations was the higher costs associated; as compared to places like China, running manufacturing units in the US seemed a better idea as phones could reach the customers quickly and more customization can take place on the home ground. But this whole US vision didn’t really pay off any dividends.

 

The company is also facing an ownership limbo since Google has essentially sold the smartphone-maker to Chinese company Lenovo but the deal still has to be finalized. Motorola President Rick Osterloh told the WSJ "the decision to close the plant was independent of the planned sale," and this isn’t something which we cant believe since Lenovo is one of the champions of stateside manufacturing.

source: wsj

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