REPORT: Largest American Axle plant to idle as work shifts to Mexico originally appeared on Autoblog on Wed, 29 Apr 2009 16:29:00 EST. Please see our terms for use of feeds.

Following a slew of labor problems including the American Axle strike that cost an estimated $2 billion, General Motors is restructuring to accommodate the declining U.S. auto market. Following the lead of Ford and Chrysler, the move will likely include further cost cutting and layoffs, as production of thirsty truck and sport-utility vehicles is wound down to make room for more fuel efficient vehicles. Information is sketchy at this stage, but plan on learning the details when the restructuring is officially announced at the company's annual meeting on June 3. With its stock closing Tuesday at its lowest level in more than two decades and thousands of jobs at stake, GM had better get this next move right.

[Source: Automotive News, subs. req'd]

GM to follow Ford and restructure its restructuring originally appeared on Autoblog on Thu, 29 May 2008 13:59:00 EST. Please see our terms for use of feeds.

With closure to the American Axle & Manufacturing Holdings strike in sight, General Motors is pushing forward to resume production at the idled and slowed plants -- assuming UAW members approve a tentative contract later this week. As of Monday, the following plants were back in operation:

• Bay City, Mich. (engines, transmissions, components)
• Flint, Mich., North and South (engines, components)
• Livonia, Mich. (engines, components)
• Parma, Ohio (components)
• Romulus, Mich. (engines)
• Saginaw, Mich. (metal casting)
• Silao, Mexico (engines)
• St. Catharines, Ontario (engines, components)
• Tonawanda, N.Y. (engines)
• Willow Run, Mich. (transmissions)

Each week the strike has dragged out, GM has lost significant production (29,925 vehicles were lost in the week ending April 26 alone). If GM cannot boost additional manufacturing output, by the end of this week the total number of lost units could be as high as 285,503. Even if the American Axle strike is settled, the UAW is still striking at GM's Fairfax assembly plant over the role of seniority in job placement. That labor dispute alone is costing the company 4,627 units each week.

[Source: Automotive News, subs. req'd]

GM lost 285,000 units to American Axle strike originally appeared on Autoblog on Wed, 21 May 2008 19:02:00 EST. Please see our terms for use of feeds.

End of axle strike costs GM $218m originally appeared on Autoblog on Mon, 19 May 2008 08:28:00 EST. Please see our terms for use of feeds.

When the UAW went on strike against American Axle & Manufacturing in late February, analysts expected a settlement within days. The supplier of axles, driveshafts, and other related components to General Motors and other automakers had a stockpile of inventory on hand, and few expected the strike to affect production. However, as talks failed to bring workers back, the situation quickly went downhill. By early March, nearly GM 20 GM truck plants were threatening to idle or shut down. By late March, GM's car plants were feeling the effects. Earlier this month, it was GM who offered up to $200 million to help bring the strike to an end -- the automaker has suffered production stops or cut backs at 30 plants in North America as of last week.

Today, American Axle made an offer to the union to bring the 11-week strike to an end. It includes buyouts to workers who have been on the job for more than 10 years, retirement packages to senior workers, and payouts to ease salary adjustments as American Axle makes pay cuts to keep their U.S. operations competitive. The latest agreement will be voted on by union members in New York and Michigan tomorrow. Let's hope they come to terms, as the strike has already cost GM an estimated $800 million.

[Source: Bloomberg]

American Axle proposes cuts and buyouts to end 11-week strike originally appeared on Autoblog on Sun, 18 May 2008 17:16:00 EST. Please see our terms for use of feeds.

GM offers up to $200 million to end American Axle strike originally appeared on Autoblog on Fri, 09 May 2008 07:55:00 EST. Please see our terms for use of feeds.

Chrysler looking to sell two axle plants, get leaner and meaner originally appeared on Autoblog on Mon, 28 Apr 2008 12:33:00 EST. Please see our terms for use of feeds.

The American Axle strike, now in its second month, is causing General Motors more than a few headaches. The parts shortage caused the General to nearly cease production of its highly profitable large trucks and SUVs, and shut down production in Oshawa, Ontario and Fort Wayne, Indiana.

As of this past weekend, it appears that GM has found enough parts to re-open those two plants to start building the Chevrolet Silverado and GMC Sierra again. While that's good news for those workers, the SUV plant in Arlington, Texas, all but untouched by the strike, will now find itself shutting down. Arlington will go on a four-week layoff starting April 14.

To get the Ontario and Indiana plants up and running, GM is reportedly getting parts from an American Axle plant in Mexico (as Chrysler has been doing). Although GM won't officially specify from where the parts are coming, if they are being supplied from Mexico, as many suspect, it will offer the automaker additional leverage in its dispute against the UAW. Union officials are currently losing negotiation power as the slumping U.S. auto market has reduced the demand for vehicles with American Axle components. In a move to shift the balance of power back to its favor, the UAW has threatened additional strikes if local contracts aren't soon reached.

[Source: Detroit News]

American Axle Strike: Two GM factories up, one GM factory down originally appeared on Autoblog on Mon, 07 Apr 2008 14:41:00 EST. Please see our terms for use of feeds.

GM finds short-term solution to American Axle strike originally appeared on Autoblog on Tue, 01 Apr 2008 10:01:00 EST. Please see our terms for use of feeds.

American Axle strike idles first GM passenger car plant originally appeared on Autoblog on Sat, 29 Mar 2008 08:01:00 EST. Please see our terms for use of feeds.

The 10-day strike between American Axle & Manufacturing Holdings Inc. and the United Auto Workers union is now threatening to idle or partially shut down 13 more GM plants as early as Monday. Although talks are underway again, even a resolution over the weekend may mean closures as it takes time to deliver inventory and ramp up production. As of now, seven assembly plants at GM have already been idled after the AA workers walked off their jobs on February 26th.

American Axle supplies components to many different automakers, meaning the strike is being felt industry-wide. The strike is hitting GM particularly hard, however, as it does represent some 80% of the supplier's business. GM idled four truck plants within days. By yesterday, five GM plants, and seven suppliers were down. Chrysler may also have to idle plants in Delaware and Mexico by mid-next week if both sides don't come to an agreement.

There is light at the end of the tunnel. Reportedly, both sides already agree on the principles of a concession, leaving just the issue of hourly wages on the table. And, as most negotiation experts point out, money differences are often the easiest to solve.

[Source: Detroit News, Photo by Bill Pugliano/Getty]

GM: American Axle strike to slow down or stop 20 plants originally appeared on Autoblog on Fri, 07 Mar 2008 13:32:00 EST. Please see our terms for use of feeds.

Striking UAW and American Axle will sit down and talk today originally appeared on Autoblog on Thu, 06 Mar 2008 07:01:00 EST. Please see our terms for use of feeds.

American Axle strike causes GM to idle four truck plants originally appeared on Autoblog on Fri, 29 Feb 2008 15:06:00 EST. Please see our terms for use of feeds.

American Axle is the sole axle supplier to GM for light trucks such as the Chevrolet Tahoe and GMC Yukon. The company supplies axles, shafts, and related components to other automakers, as well. As the four-year contract with the UAW neared the end of its term and the strike loomed, American Axle did stockpile its inventory. It is unclear, however, just how much supply is on hand. It may not need to last long, as analysts expect a negotiated settlement to end the strike within several days. This is good news for everyone, especially the workers who are walking the picket lines outside in the freezing snow.

[Source: Automotive News, subs. req'd, Photo by Bill Pugliano/Getty]

UAW strikes again! Targets American Axle after talks end originally appeared on Autoblog on Tue, 26 Feb 2008 16:31:00 EST. Please see our terms for use of feeds.

American Axle Manufacturing (AAM), one of General Motors' main suppliers, isn't bankrupt,but it is feeling financial pain from the 1,100 workers that it is currently paying not to work. A grand total of $75 million is spent by AAM each year to maintain its share of the United Auto Workers "jobs bank", which represents approximately 2 percent of the supplier's gross sales and a substantial dent in the company's $56M of profit last year.

In order to cut the banked workers free from AAM's balance sheet, the company is mulling the same approach taken by others in the unionized auto world - massive buyouts. Assuming that workers would bite on a hypothetical figure of $100K/each (a number that has been thrown around in the context of similar action from Delphi and GM), the company would obtain a return on its investment in approximately 18 months. The company is intent on returning to its previous financial performance by 2008, which is a move that would require adding $100M to the bottom line each year.

[Source: Detroit News]

American Axle looks to shake loose "job bank" originally appeared on Autoblog on Thu, 25 May 2006 10:04:00 EST. Please see our terms for use of feeds.