Google shocked us all when they announced that they would be selling Motorola Mobility to Lenovo for just under $3 billion early this year, and we wondered just how that would affect the company’s day-to-day activities. Fortunately not much has changed yet since the company is still technically under Google until the Lenovo acquisition is completed, but that has now changed. Today Motorola announced that they would be closing their Texas manufacturing plant, which at it’s peak employed close to 4,000 people, by the end of this year.
The factory was opened in May of 2013 and will stay open until late 2014. Motorola President Rick Osterloh and Motorola’s senior vice president for supply chain and operations Mark Randall stated that the plant would be closing due to the high costs of manufacturing in the United States. They also found that sales of the Moto X were not particularly great, especially in the North American market. Manufacturing of Motorola’s products will certainly go to another country, but the company has yet to specify where.
On the bright side though, Motorola has confirmed that their MotoMaker customization service will continue on even though the Texas factory will be closing.
Via: Wall Street Journal