Motorola to shut down Texas factory that builds Moto X

Posted May 31, 2014

Motorola has announced it is shutting down its factory in Fort Worth Texas, where it builds smartphones. This ends Motorola’s attempt to build devices in the U.S. The plant in Texas will be closing by the end of the year.

Currently, the plant is known for building the Moto X smartphone line. It employs around 700 workers as of right now.

Motorola Mobility is still owned by Google, but it is being sold to Lenovo for $2.9 billion. Google acquired Motorola in 2012 for $12.5 billion. This deal is expected to close later this year.

The plant opened in May 2013, but the costs for labor and shipping parts were higher compared to overseas factories. The sales of the Moto X was a factor in the plant shutting down. Motorola reportedly sold around 900,000 Moto X smartphones in the first quarter compared to 26 million iPhone 5s devices in the same period. Motorola will continue building the Moto X in Brazil and China.