American Axle strike idles first GM passenger car plant
When the American Axle strike began, GM had a 106-day supply of pickup trucks on dealer lots, and even a month-long strike likely wouldn't have hurt the Detroit automaker. It has now been more than a month, the strike isn't any closer to ending, and now GM's car plants are joining its truck plants in the unemployment line. Friday marked the last shift at the General's Hamtramck, MI plant, which builds the Buick Lucerne and Cadillac DTS, due to a lack of parts coming from American Axle. According to Automotive News the pain may not stop there, either, as the Lordstown, Ohio plant may have to shut down production of the Chevy Cobalt and Pontiac G5 due to a lack of brake components. GM may not have been all that concerned about the American Axle strike when it began in February, but now after a month with barely any talks and a quickly growing list of shuttered plants, we're guessing things are getting a bit tight over at the Ren Cen. [Source: Auto News (subs. req'd)]
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Reader Comments (Page 1 of 2)
Biff Baxter 8:21AM (3/29/2008)
Shut down the Cobalt line?
The UAW is doing GM and America a favor.
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JWIL 8:27AM (3/29/2008)
LOL
K 11:47AM (3/31/2008)
People who don't like these cars obviously like you are not seeing the whole picture of what shutting down all these lines mean. It means NO JOBS. People who work on those lines will get layed off and as a family member one of those workers that means barely any money for there family's and I know several people who have children to take care of and are single parents. Plus it's not just affecting the GM plants it's affecting other plants also who make parts for the GM Plants like I A C they had to lay off a bunch of people including my Fiance b/c of this strike. In this economy right now you can't afford to be laid off they need to get this resolved. These would be the first people to whine and cry about work bein shipped to China but yet lets give them a reason to. We need this strike to end. So regardless on whether you like the vehicles or not think about what this strike means for people's jobs all over the U.S.
geo.stewart 8:33AM (3/29/2008)
This wont last. Right or wrong, Government will step in if talks dont at least resume. All the economy needs now is for the automakers to go idle.
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FSM 9:03AM (3/29/2008)
Who cares if there are less Cobalts, DTS's, Lucernes, and G5's? They should take this as an opportunity to trade in the resources these four models use for one decent sporty compact.
cowboy bob 9:38AM (3/29/2008)
Geo.- You may well be right. Certainly this economy is at a critical juncture, and will not recover at all if disruptions of this magnitude enlarge. FSM- I presume your comment is in jest. Surely you must realize the magnitude of chaos in the economic arena if one of the largest consumer manufacturers in America shuts down. The ripple effect of a protracted shutdown will impact the economy almost everywhere. Anyone who understands where we are at this point would know that this isn't good for anyone.
Dave 9:24AM (3/30/2008)
Sorry, the Cobalt is a pretty descent car. Just because its not the segment leader doesn't make it bad.
The UAW's reputation is getting worse and worse. Like teacher strikes this is morally wrong and the government needs to stop the union bs. I hear also that they want to renegotiate falls health benefits agreement with another expected strike this summer.
DomManganelli 9:35AM (3/29/2008)
gm is probably saving money by not producing them anyway
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cowboy bob 9:44AM (3/29/2008)
GM must continue to pay support personell, and medical costs and other benefits to laidoff employees. Also all the infostructure costs in idle plants as well as dozens of other expenses. To think any "savings" here would develop, is incorrect by a tremendous margin.
DomManganelli 9:47AM (3/29/2008)
of course you are right.... what i was meaning to say is that they are bankrupting themselves by producing crap cars.
cowboy bob 2:12PM (3/29/2008)
Dom, while the selection from GM remains less than world class, their quality has improved. If they would make design strides toward that which Toyota and Honda enjoy, that would be an improvement.
DomManganelli 3:43PM (3/29/2008)
while this is true, the biggest challenge for them i think is going to be fixing their brand's image, which has taken a real beating in the last few years
cowboy bob 7:22PM (3/29/2008)
You are correct. They will suffer for a decade as a result
Avinash machado 9:34AM (3/29/2008)
Hope the next generation Cobalt and Astra will be built on the same platform.
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MM 9:56AM (3/29/2008)
GM does not have to pay workers who are laid off due to a UAW strike. The Union assumes all pay and healthcare responsibilities. I give this strike another 30 days. You figure that GM already has over 100 days inventory, it might do it some good not have to build some slow selling units.
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Volk 6:55PM (3/29/2008)
I hope you're right. Considering that consumer confidence is at the lowest level since 1977, the auto sales numbers for March we're going to see next week must be awful. So, I hope not wasting resources on production of those cars should do more good for GM than harm. UAW picked a wrong time for strike, suckers. Besides, as a Pontiac fan, I hope that idling production of G5 in its current incarnation will be permanent - that car is a disgrace to the brand.
Michael Meyer 9:59AM (3/29/2008)
Furthermore; the Lordstown Plant and the Hamtramck Plant are already on the list of potential plant closures or complete change over should GM decide to keep them open.
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Thedevil 10:03AM (3/29/2008)
i'm not sure what you guys are talking about,GM has turned the corner and they are now full speed ahead,of course you could not tell from all the recalls and problems they are having this soon in the year.
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Stéphane Dumas 10:10AM (3/29/2008)
As someone mentionned on Leftlanenews
http://www.leftlanenews.com/uaw-strike-at-american-axle-forces-gm-to-idle-first-passenger-car-plant.html (post #6) "...GM is on its way back…. its quality is gaining on the competition…. they're getting close… and…. OOOOOOHHHHHH!!!!! Clotheslined by the UAW!..."
I wonder if someone have a voodoo doll of GM? Strange then the timing of the strike at American Axle happens at the moment then GM begin its return...
TwinTurbo3000GT 11:21AM (3/29/2008)
freaking whiners. there are plenty of people out there who would love those jobs...
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