Motorola to close its Moto X factory in Fort Worth, Texas

When Motorola Mobility first announced its plans for the Moto X smartphone, it heavily promoted the fact that it would be made in a factory located in Fort Worth, Texas, rather than in a massive Chinese manufacturing facility. Now the dream of making a smartphone in the United States will come to an end, at least for the moment.

The Wall Street Journal reports that the Moto X plant, which at one point had 3,000 workers, will shut down by the end of 2014. The factory currently has just 700 team members working on assembling the Moto X.

The idea was that the Moto X could be shipped quicker to consumers in the U.S. by making it locally, and also give Motorola a way to offer consumers extra customization features via the Moto Maker system, such as different color choices for the case and personalized messages. However, sales of the Moto X never reached the levels needed to sustain the higher costs of making the smartphone in the U.S.

This news comes even as Motorola plans to start selling the cheaper Moto E and Moto E LTE in the U.S. in early June.

Source: Wall Street Journal | Image via Motorola

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16 Comments

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Life quality of those workers in Asia is so bad that's cheap... Very hard to compete with the salary standards in America, and moreover, Motorola is not selling as much as to justify keeping this huge investment

Isn't it like the opposite? Standard of living in Asian countries is better since here you can live a life of luxury for a tenth of the price. You get to spend most of what you earn since taxes aren't as ludicrous. Owning a car is much cheaper since you don't have to pay for insurance and fuel prices are much less. Education standards are much higher and almost all middle class families can afford to send their children to private schools and universities. As for health standards, most Americans can only dream of getting a good treatment without having to pay for it for the rest of their lives. And since all the commodities Americans use is made here, you can get the same thing, same quality, design, even made in the same place by the same people, just without some fancy brand tag for one tenth of the price.

Hopefully Lenovo will utilize some of it's US manufacturing plants for Moto phones going forward.

But with the pace of phone hardware, I dont see it happening.

And Microsoft own Nokia mobile division yet they have kept all manufacturing process as is. Not one person has been laid off.

AsherGZ said,
And Microsoft own Nokia mobile division yet they have kept all manufacturing process as is. Not one person has been laid off.

But Microsoft is not a manufacturing company buying another manufacturing company creating duplicate resources. Google / Microsoft are software companies that acquired hardware manufacturing.

Every company has their own business plans and oganizational structure. Just because MS and Nokia have not layed anyone off...yet...doesnt mean it fits with all other companies needs/direction.

AsherGZ said,
And Microsoft own Nokia mobile division yet they have kept all manufacturing process as is. Not one person has been laid off.

This is incorrect. Pls Google 'Chennai Nokia factory'

AsherGZ said,
And Microsoft own Nokia mobile division yet they have kept all manufacturing process as is. Not one person has been laid off.

To be fair, they are both new to hardware manufacturing and the purchase was very recent. They are also selling phones that currently don't sell that well in the US and sell much better overseas. If they can gain a little traction in the US maybe it would make more sense for them to move manufacturing here, though I doubt they will as it wouldn't be a good short term business decision, but who knows.

I think the only way were going to be able to see smartphones made here in the U.S is if Apple does. Apple is probably the only American phone company that ships enough product to be able to sustain manufacturing here.

Maybe if the phone were more spectacular. It was a great phone, but no one is surprised that it didn't sell huge amounts.

Shame, US manufacturing would be nice.

Its expensive for companies to produce in America... Its a shame that outsourcing is taking away so many jobs due to the want for higher profit margins.
Im sure the next moto x deuce and other devices could be made in the same factory to help recoop loses.

Motorolo was sold off to Lenovo by Google, which has it's established manufacturing in Asia and distribution setup for the United States and more. In this case, it might not been cost, but duplicate cost.

crysomemoar said,
Its expensive for companies to produce in America... Its a shame that outsourcing is taking away so many jobs due to the want for higher profit margins.
Im sure the next moto x deuce and other devices could be made in the same factory to help recoop loses.

It's hard to compete with almost slave labour aka Chinese

I knew that once Lenovo took over Moto from Google, there would be some major changes. Just sucks its something that affects a decent number of jobs here in the states