It turns out that the three-day inventory of parts that was stockpiled by OEM supplier American Axle is not nearly enough to weather a strike by the United Auto Workers union. The strike began early Wednesday, and though it's only Friday, General Motors is preparing to shut down its second, third and fourth assembly plant on account of parts shortages from American Axle. GM shut down its Pontiac, MI truck plant yesterday, which will be followed by the Fort Wayne, Flint and Oshawa plants, which build the Chevy Silverado and GMC Sierra, at midnight tonight. That's a lot of truck plants off-line, but there's one more in Silao, Mexico that builds the Suburban, Tahoe, Yukon XL and Cadillac Escalade and ESV that will remain running for now.
Unlike the strikes levied by the UAW against GM and Chrysler during contract negotiation talks last year, the current strike against American Axle is no token bargaining tool that will end before the paint on the picket signs is dry. Despite that, it does give GM an opportunity to lower its inventory of unsold trucks and SUVs, so for the time being the giant automaker isn't panicking. The strike has the potential to wane on, however, considering that the UAW is deeply committed to fighting against a proposed cut that would trim American Axle's hourly labor costs from $70 to between $20 and $30. The supplier wants to recoup its $3 billion investment in its plants, but the workers are fighting to ensure that it's not at their expense.
[Source: Automotive News, Photo by Bill Pugliano/Getty]
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Reader Comments (Page 1 of 4)
dan spalinger @ Feb 29th 2008 3:16PM
Best thing to happen to GM in a little while...Now they can whittle down their bloated truck/SUV inventory without laying people off...Heck...they should just cancel some models while they're at it and really do themselves a favor...
Pete @ Feb 29th 2008 3:19PM
Fire em all!!!!!
Ross @ Feb 29th 2008 3:22PM
What about the GM-Assembly plant in Janesville, WI?
deedan92 @ Mar 4th 2008 2:55PM
As of today we are still working. They seem to be pulling axles out of their ass.
Thedevil @ Feb 29th 2008 3:28PM
DAN, i concur.
Nick @ Feb 29th 2008 3:29PM
Ding Ding next stop China! Alll Jobss Aboard!!!!
Big Rocket @ Feb 29th 2008 3:45PM
Seventy dollars an hour? For real? Even if that figure includes health insurance and other benefits, it is still a LOT for line workers who have no real job skills. They should be glad to take the $20 to $30 an hour, because if they don't, the workers in Silao, Mexico will be glad to do the same work for a lot less dollars, or pesos. And if they want real and meaningful job security, they can get out and learn jobs skills that the average Mexican doesn't possess.
Big Rocket @ Feb 29th 2008 3:47PM
Correction: The plant is Silao, Mexico is a GM plant that uses American Axle parts. It doesn't produce American Axle parts.
3cubed minus 3squared plus1 @ Feb 29th 2008 5:39PM
I hope you were implying the average Mexican in the US and not in Mexico.
If not, them...
Jolyn @ Mar 4th 2008 1:31AM
Let's think about this for a min...
My husband makes $24 an hr. Do u really think AAM is paying $40-50 hrfor our insurance and benefits? If that is the case, raise my husbands pay to the $35 you want to keep it at and I will get my own benefits. We can both be happy!
Donna M Adams @ Mar 4th 2008 9:55AM
you have no idea what you are talking about. AAM workers do not make that much even with"benifits". AAM won't give the UAW the paperwork on how they came up with thoes numbers in the first place. That's because they pulled them out of the air. First AAM said the workers made around 50 an hour & as the strike gets longer so does their "rate of pay" doesn't that sound a little odd ?? know what you're talking about, the whole story, not just part of it.
BirdmanSTX @ Feb 29th 2008 5:20PM
There's also a plant in Arlington, TX that produces Tahoes and Yukon's, no?... I thought they were building the Hybrid versions even...
Gm worker @ Mar 9th 2008 10:46PM
Yes there is a plant in Arlington tx and yes we do bulid the Yukon, Tahoe, Escalade the Esv and the Hybrids. Their telling us we should have axles up untill march 18th. Ill have to see it to belive it..
hooligan @ Feb 29th 2008 6:44PM
I live near that plant. The job market here sucks really bad. I'm sick of hearing these UAW jerks whine about how they have it so bad or whatever. Be thankful you have a job in the current economy, especially in manufacturing, be thankful you have good benefits and go do your job. ARRRGGGGHHHH
Jolyn @ Mar 4th 2008 1:30AM
I want u to take a 60% pay cut and then I will listen to what u have to say.
Mal Fuller @ Feb 29th 2008 7:48PM
Does American Axle make that infamous 10-bolt differential with the grenade inside? Just wondering.
stratojet @ Feb 29th 2008 8:12PM
American axle does a fine work and their quality is quite good. Now is it worth $130.000.00 a year? With a high school diploma? They will have to follow what the UAW has decided for their Auto workers. The whole system has imploded under it's own weight. The same thing is going to happen to US administration and to all the Government who followed the Keynesian economic theory. One day or the other, you have to pay off your debts.
elprogramer @ Feb 29th 2008 8:32PM
You're reading too much into it, that figure is the sum total of the benefits. And while that figure might seem like a lot, keep in mind that those figures were agreed upon many years ago when times were good.
But anyway, this is good. General Motors doesn't have to pay supplemental pay when it lays their people off for strike related shortages and it's already a slow year.
Jolyn @ Mar 4th 2008 1:31AM
We don't make that much a yr. Try cutting that almost in 1/2!
stratojet @ Mar 4th 2008 7:13AM
$130,000 a year includes pension and other fringe benefit