International Automotive Components Layoffs to Eliminate 160 Jobs

job cuts

IAC is Laying Off Employees in Dayton

A supplier of auto parts—including doors, interiors, and instrument panels—International Automotive Components (also known as IAC Group), has announced that it will be laying off 160 employees at its Dayton, Tennessee plant.

The layoffs will affect 138 permanent employees and 22 temporary employees. The workers have been informed that the layoffs will take place in August and early September.

The Dayton factory has employed locals for about four decades under different ownerships. The factory was taken over by IAC in 2007.

Mercedes-Benz (part of Daimler AG) and Nissan Motor Co Ltd are the primary customers of auto parts from IAC’s Dayton factory. The company has announced that it will be moving factory operations elsewhere and, at the same time, will be looking for business from other automakers. The announcement hints at a slowdown in business from the two customers.


Last year in October, the company laid off nearly 500 employees in Iowa. The Iowa factory primarily served Fiat Chrysler Automobiles. The company cut its hourly labor force from 600 workers to just 160. Salaried employees were also reduced from 76 to 39.

Auto Industry Slowdown Blamed for Cuts

IAC management cited a slowdown in the auto industry as the reason behind downsizing. The Iowa factory produced parts for Fiat Chrysler’s “Dodge Dart,” but Fiat has plans to discontinue producing the car.

The latest layoffs were announced just days before IAC opened an engineering facility in Pune, India, which may employ up to 150 workers. The facility will be focused on the technology side of IAC’s business, designing and developing premium automotive interiors.

The company also opened a plant in Poland earlier this year, to increase its footprint in Europe. Prior to that, IAC started production at a facility in the Czech Republic last year. The company also made a foray into South America, opening its first factory in Brazil in summer 2016.

Company spokesperson David Ladd confirmed that the Dayton plant is not closing. After the layoffs, 428 salaried and hourly wage workers will continue to work at the factory.


Dayton, Tenn. auto supplier laying off 160,” Times Free Press, June 17, 2017.

Iowa City plant to layoff nearly 500 workers by end of year,” ABC 9, October 20, 2017.

IAC continues global growth in engineering and manufacturing,” Automotive World, June 20, 2017.