Auto parts supplier Alliance AutomotiveParts is closing an auto parts manufacturing facility in California and laying off 10% of its workforce.
The company said in a statement that it will also “immediately close an assembly line located in North Carolina and move all of our operations to a new facility in Virginia.”
The company also announced that it would not seek to raise additional funding.
The announcement came as U.S. automakers are trying to expand the auto parts supply chain to include parts for other automakers.
Last week, General Motors said it will buy up to 2,500 GM-made parts from Alliance Automotives.
Alliance Automobotics manufactures the majority of parts used in GM vehicles.
Last month, GM announced that its first-quarter sales of vehicles made by Alliance Automobiles were up by almost 40%.
The announcement comes as U., UK, and Japan are struggling with shortages of some auto parts and manufacturing.
The Associated Press contributed to this report.