Auto parts manufacturer Westwood Automotive said it plans to remove about $1 billion worth of parts from its vehicles.
The company announced Thursday that it is moving all of its vehicle parts from the vehicles to its new headquarters at the company’s Fremont, California, headquarters.
The move comes just days after the U.S. government announced a new rule requiring manufacturers to report vehicle parts prices to the government.
“We are going to be moving all vehicle parts to our new facility in Fremont,” Westwood said in a statement.
“The vast majority of our vehicles now will be powered by our new manufacturing facility.”
The Fremont plant is expected to open in 2019 and will employ more than 1,000 people.
Westwood said it expects to cut costs by $250 million, save $400 million in annual production costs and to reduce the total number of vehicles produced by about 100 percent.
Westside, a subsidiary of United Auto Parts, said it will retain about $400 billion in sales and $2.8 billion in profits.
The company has about 3,300 employees in the U, Canada, Japan and Australia.