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Motorola closing its Texas factory

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While Canadians didn’t directly benefit from Motorola’s Texas-based manufacturing facility, we’re sad to hear that it will be closing its doors by the end of the year. Motorola confirmed to The Wall Street Journal today that it is not selling enough phones to warrant keeping it open, and has dropped its employee numbers from over 4,000 when it opened last summer to around 700 today.

There is no doubt that Motorola’s intentions were honourable, but the company’s current President, Rick Osterloh, decried the high cost of doing business on home soil. While all is not lost as Engadget confirmed that Moto Maker customization will continue, just not from the United States.

The Chicago-based company, which is set to be sold to China’s Lenovo later this year, is still supporting the Moto X’s colour- and storage-based customization, is preparing to release a follow-up to the Moto X follow-up with thr the Moto X+1 later this summer.

Motorola and Apple were two manufacturers who recently brought some of their manufacturing business back to the States, but the vast majority of OEMs rely solely on plants in China, Taiwan and other parts of Asia.

  • framing god

    North Americans are just not hard working enough some days.

    • FRiaz

      hahah ad here comes the economist.

    • framing god

      Lol and! People in NA are either go getters or losers. The go getters go get her and the losers just don’t want to work in the first place. The menial jobs are being replaced by machines making the losers disgruntled by the rich, and the rich richer.

    • It’s Me

      Fair enough point. But the real point is that it’s just cheaper over there. Why even replace with a machine when you can pay next to nothing for employees? Why pay more for a North American with a high school diploma when you can pay less for more people that may not even be literate?

      It’s not so much that North Americans are lazy. But more of them expect above 3rd world wages. Education levels also play a part.

    • JTon

      You’re spewing sensational FUD

    • TP

      Excuse me, I believe this has to do with high wage, rental, insurance, transportation and all other expenses. Not sure what your point is.

    • 5Gs

      I believe we complained so much and we didn’t appreciate what we had. So here we are complaining again

    • Omis

      Nope its Wall street and the expectation that the business has to grow and be more profitable each year. it eventually gets to a point where thats no longer possible. The next step is to become more profitable by reducing costs. Once they can no longer reduce costs. The investors pull out their money, the ceo and upper management jump with their parachutes, and the company collapses.

    • 5Gs

      True but if you really look at it. Money has no true value and honestly for such greedy people. They are already filthy rich but i am not sure what else they want. They already have many mansions and 20 fancy cars in drive ways, private jets etc etc

      If i had all that. I am pretty sure i wouldn’t want more :S I mean at that point i will be like money is useless. Lets make a difference and help poor people get rich.

    • 5Gs

      Sadly but truly i agree with you. I wonder if you ever worked with chinese. I happen to work with quite few so far. Have to admit it. They mind their own business. They are not into any stuff but working and yeah they are so focus that if you even try to talk to them at work time regarding some other aspects. They will nicely ask you to excuse them.

      On the other hand I think we were not lazy. We were just smart and not hardworking. But i guess chinese are both. Don’t blame NA though because we were not born to work.

  • nekkidtruth

    Truth be told, perhaps they should have opened up ordering to Canada. Chances are they’d at least have prolonged this inevitability by another year or more.

    • Columbo

      Canada’s population is 1/10th of the States so at best sales would be 10% higher. Don’t think that would cut it.

    • nekkidtruth

      Hence why I said “prolonged this inevitability” ;)

      It was going to happen regardless, but allowing access to Canada at the very least would have helped longevity.

  • jay

    Poor quality and high wages

  • John W

    They would have sold more phones if they made the unlock version available worldwide instead of only in the U.S.

  • MatroXX

    RIP Moto :’(

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