• Apr 29, 2009
Blaming the current economic conditions and still wounded from a near-fatal labor strike, Detroit-based auto supplier American Axle & Manufacturing Inc. will reportedly lay off at least 500 workers at its largest plant and send the remaining jobs south of the border to Mexico.
This time last year, the manufacturer was embroiled in an ongoing UAW labor dispute. The strike crippled General Motors, eventually forcing the automaker to stop production on many of its popular trucks before American Axle reached terms with the union and ended the strike after three months. The dispute couldn't have come at a worse time. Its resolution last spring was followed by a plummeting economy dumping vehicle production, choking GM's demand for American Axle components (accounting for 74% of the floundering supplier's sales).

Founded in 1994, American Axle will start moving the facility's production to Guanajuato, Mexico over the summer. More than 500 of the 700 workers at the Detroit complex will be laid off indefinitely, and only 232 of the company's most senior workers will likely have jobs remaining when the dust settles later this year. Thanks for the tip, Farzin.

[Source: The Detroit Free Press]


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  • 41 Comments
      • 5 Years Ago
      Whew! The UAW sure protected their workers from any shenanigans at that plant!
      • 5 Years Ago
      As much as this sucks, I really can't blame the company. They need a reliable workforce at reasonable wages. Unfortunatly neither is available in Detroit. It only makes sense for them to move.
        • 5 Years Ago
        A reliable workforce is in Detroit, they just refuse to work for anything less than $40/hr, full benefits, 500k life insurance, and free day care to turn a light bulb.
      • 5 Years Ago
      Do you think government lead by Mr. Obama will raise tariffs on imported goods?
      • 5 Years Ago
      why do you have to go there hes been in office 3 months hes not a miracle worker blame the last guy who was there 8 years..........
        • 5 Years Ago
        Or better yet blame the guy who signed NAFTA the 8 years prior...
        • 5 Years Ago
        You guys are getting silly with this ignorance. Obama has no more control over the flu than Bush had over a handful of lunatics that decided to learn how to fly planes into buildings. The only way to completely control either would be to lock down the borders. No one comes in, no one goes out. Not the kind of place I want to live.

        Why are you all so worried about Mexiflu anyways? How many Americans have died from it? Ask yourself how many Americans will die today from cigarette smoking, alcohol, crime, etc. Mexiflu doesn't even register on the map.

        Idiots!

        Auto unions however are something that have done more harm than good for many years now and can be controlled.
        • 5 Years Ago
        mcampasini: why do you have to go there hes been in office 3 months hes not a miracle worker blame the last guy who was there 8 years..........

        The Mexican swine flu is the first real international test of Obama's Presidency that he can't relentlessly and endlessly claim he inherited. Sorry, it's all on his watch and he has already failed us* miserably by essentially doing nothing other than voting "Present!".

        (** us being American citizens, of course he's doing a great job protecting the citizens of "M" [don't say it! - we don't want to derail amnesty!])

      • 5 Years Ago
      How do the crazies find themselves on an auto enthusiast's site?
      I will have to ponder that for a while, 'cause it irks me.
      • 5 Years Ago
      iouopupop[: "I thought Lord Obama promised to SAVE American jobs?"

      I believe he said the stimulas would "create 3 million jobs". Later revised to "save or create 3 million jobs"

      I don't think he ever said "American jobs"

      John's Johnson [snicker]: "Please tell me you just blamed Barack Obama for swine flu."

      He didn't, but I do blame him for not directing the CDC/DHS to close the border, test all travelers, and quarantine all suspected carriers. Unfortunately, he's more interested in politics and ensuring the smooth progress towards amnesty for Mexican illegal aliens than protecting American citizen's lives. Change we can believe in! Si se puede!
      • 5 Years Ago
      @BrianFL: In a clear case of the union driving up labor costs and pushing jobs offshore, I would say it deserves all the hatred and blame it gets.
      • 5 Years Ago
      AZZO45b: If you are trying to pass FACTS... Swine Flu came to America via AMERICAN kids (from a Catholic private school) returning from a Spring Break trip in Cancun area.

      Really? The 2 year old Mexican child that died in Texas, whose family brought the baby here for treatment - they had been partying in Cancun? Or maybe the Mexican visitor that went down at Disney yesterday (fyi: I live in Orlando) was who you were referring to. I was unaware...

      (btw - couldn't resist that Catholic private school slam, could you?)
        • 5 Years Ago
        Soo these catholic kids went to Mexico, came back w/ the flu then mailed it out into the world!!!

        GENIUS you are a GENIUS...SOMEONE CONTACT W.H.O!!!!

        Swine flu came from MEXICO, it spread throughout the world from GLOBAL TRAVEL!!

        btw UAW sucks, it outlasted its usefulness years ago. It needs to be disbanded and reformed a few years later. (note I didn't say UNIONS i said UAW)
      • 5 Years Ago
      LOL @ "marxist president". Call him what you want, but please inform yourself about the words you are using..
      • 5 Years Ago
      @Len_A: Less than 1 year ago, the UAW was striking American Axle, and GM had to step in and pay the ransom to end the strikes. The ransom money was $218 million (of which $18 million alone was for supplemental benefits!), on top of over $800 million in lost sales for GM. That was well over $1 Billion that the UAW screwed out of GM, not to mention however much money the UAW screwed out of American Axle. There's no other way to say this: In the recent past, the UAW used threats of strikes or actual strikes to extort huge sums of money from automakers and auto suppliers, and now the cost of doing business in America at unionized factories is too high to sustain. So it took the near collapse of the auto industry, and Billions of taxpayer's bailout dollars, for the UAW to finally cut wages and benefits down to reasonable levels, and the public is supposed to show sympathy for the parasites all of a sudden? The UAW and all of its members truly deserve all the hatred and blame they get.

      Autoblog, Apr 30, 2008: "The two-month long American Axle strike also cost GM about $800 million..."
      http://www.autoblog.com/2008/04/30/gm-posts-3-25-billion-loss-in-q1/

      Autoblog, May 19, 2008: "The UAW strike at American Axle has ground on for three months... General Motors had pledged $200 million dollars to help get things rolling again after being forced to idle plants... the automaker's managed to shake loose another $18 million to pay for supplemental unemployment benefits, bringing its total commitment to $218 million..."
      http://www.autoblog.com/2008/05/19/end-of-axle-strike-costs-gm-218m/
      • 5 Years Ago
      @notYou: I was illustrating the silly nature of playing the blame game. Since you brought up 9/11, and how much success George W Bush had at preventing a second 9/11, it brings us to the following: Didn't Bush fail our country by not doing enough to stop the first 9/11? For the record, I think it is silly (read: wrong) to blame Bush for the first 9/11, just as it is silly to blame Bush for SARS, or Obama for swine flu.
      • 5 Years Ago
      The Swine Flu? Go back to your trailer and stay off the internet.
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