Strike forces GM to suspend truck and SUV orders
General Motors has informed its dealers that production of some of its 2008 full-size trucks and SUVs has been halted due to the ongoing American Axle strike. The affected vehicles include the GMC Yukon, Denali, Sierra heavy-duty regular and extended cab, its commercial-duty pickup and variants of Chevrolet trucks and Tahoes. According to the General, a basic lack of parts is the reason for the stoppage and dealer orders for the week of May 8th and May 15th have been cancelled. While a lack of production is bad news for any automaker, we can't help but think that it couldn't have come at a better time for the General as SUV and truck sales are down overall.
[Source: Automotive News – sub. req'd]
Reader Comments (Page 1 of 2)
tanooki2003 9:41AM (5/07/2008)
Now tell me when I am actually supposed to feel sorry for GM. I think this is actually a good thing. Less SUV's from them means I can see better out my windshield when cruising in my sports car on highways and city streets.
Also maybe they should concentrate more on making a decent small car as their next cash cow instead of these gas gobbling behemoths.
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Blake 11:23AM (5/07/2008)
Less SUV's from them as opposed to Toyota, Honda, Nissan or anyone else? Ohhh, that's right! Honda's use rose petals for fuel. And Nissan's run on pure emotion alone. And how could anyone forget that Toyota SUVs are fueled by baby flatulence. Silly me.
Zeus.:God 9:42AM (5/07/2008)
OMG YES SUVS ARE DYING GAS HOGS BLAH BLAH BLAH GO PRIUS...
Yeah, pretty pointless- but an example of what NOT to post in here. Lets keep that type of stuff to a minimum
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Thedevil 9:44AM (5/07/2008)
Yea it's the strike.wink,wink
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Adam Marcello 9:57AM (5/07/2008)
In protest I shall remove the union sticker from my car and if the union is still being a dead weight when the time comes I will actively seek out an american car built non union in a foreign country (G8 GXP perhaps).
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kris 9:59AM (5/07/2008)
yes, UAW will not be satisfied until they kill GM.
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Schmeltz 10:11AM (5/07/2008)
Something I have been wondering the whole time the American Axle strike has been going on...Is American Axle the only cotten-pick'n company in all of the vast North American continent that has the intellectual property and skilled labor to manufacture axles??? They are doggone axles for Pete's sake! They're not advanced computer modules, or nuclear reactors, or jet engines, they are axles! Isn't that one of the things Dana makes? Is there no one that can start providing these axles shortly with say some quick re-tooling of their shops and blue-prints provided by GM with their specifications? I'm probably over-simplifying things but axles just don't sound like an issue that should be shutting down a slue of car factories.
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Guenther 10:20AM (5/07/2008)
Takes time to tool up. When axles were just that- axles- it was easy to change from Corporate axles to Dana axles. Up to the early 90's, all you really had to change was the bolt pattern and the spring perch width. Now you have to have the right brakes that go with the ABS, the right mounts, etc. If the strike suddenly ends, the work-load goes away.
CompWizrd 10:40AM (5/07/2008)
American Axle also makes other things than just axles.
inteller 10:11AM (5/07/2008)
GM should make the suspension permanent.
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Hank 10:18AM (5/07/2008)
Considering no one is buying them, it may turn out to be a good thing for GM, so they don't end up with the kind of inventory glut Dodge is looking at with their trucks.
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BigMcLargeHuge 10:28AM (5/07/2008)
Maybe that is why it is taking so long to get to resolution.
GM doesn't think their demands match demand for the product they support.
Rick 7:44PM (5/08/2008)
I'm sure GM will rush back to the table to negotiate a new deal with the union ;)
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inteller 12:25PM (5/07/2008)
I don't think you'll see the dealers complaining. They might start taking in some SUV trades now :)
UAW just screwed the pooch on this one. GM can sit this one out indefinitely.
Scorch 11:44AM (5/07/2008)
The unions have demonstrated that as long as GM is showing even the slightest profit they will continue to go after them. I hate to say it but people wonder why these types of jobs get sent overseas; they get done. Sadly this doesn't look like its going to end before GM declares bankruptcy and the union members lose ALL their benefits but until then the UAW will just keep asking for more and more.
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Richard S. 11:53AM (5/07/2008)
Just one question: Are these striking workers getting paid? I know that the UAW has a reserve fund, to pay striking workers a stipend, but it is not the same pay rate of their salaries and for how long can they do that before they deplete their money chest and striking workers start maxing out credit cards for living expenses?
I guess it is a battle who can withstand the bleeding the longest.
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Guenther 12:01PM (5/07/2008)
This is the second UAW strike of any lenjgthy significance this season, but both have involved relatively small numbers of members. Members get $200 a week in strike pay, which doesn't go very far. Hardest hit are families where both parents work in the same plant.
Matt 12:57PM (5/07/2008)
OK UAW...we get it...you don't want the American manufactures to survive.
Now just die already.
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gumbo koontz 1:04PM (5/07/2008)
American axle workers struck simply because AA managed to earn a penny on the dollar. That is it... speaking of profit envy... or penis?
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gumbo koontz 1:20PM (5/07/2008)
When GM and Ford started building SUVs, know what?, SUVs were practically given away to any lead feet buyers with huge rebates. Even though SUVs are profitable, why give rebates? Were GM and Ford trying to do Big Oil a favor since the beginning? Maybe it was because GM and Ford invested some of UAW pension dollars in Big Oil stocks to bolster UAW pension coffers?? Maybe those huge rebates were UAW's own selfish idea? Was it part of previous contract talk sessions that we are not allowed to listen into? UAW are scumbags since day one, arent they?
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