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.