Panasonic’s car stereo manufacturing plant in Peachtree City will close by the end of next year, resulting in the loss of 500 jobs, a company spokesman said Friday.

Panasonic officials notified workers of the decision Thursday. The downsizing is one of the largest announced in Georgia this year.

The company plans to consolidate its manufacturing facilities at a plant in Reynosa, Mexico, said Jim Reilly, spokesman for Panasonic North America.

Reilly said the company is trying to slash costs amid a slumping U.S. auto market.

“All the companies that supply the auto industry right now are affected by the downturn,” he said.

Panasonic will maintain some operations at its Peachtree Center facility, including product development and regional administrative headquarters.

Auto sales have fallen sharply in the last year as high gas prices, falling home prices and a down economy have kept shoppers away from showroom floors.

Panasonic Automotive Systems Company, a division of Japanese electronics giant Matshusita, supplies dashboard electronic equipment to domestic and foreign auto makers.

The Peachtree City plant opened in 1987. The closing will be occur in phases over the next 16 months.