After slipping into receivership this past January, Ssangyong Motor Company's problems have only escalated. A court-ordered restructuring of the Korean automaker earlier this year left 976 employees without work. The displaced workers organized an armed sit-in on the Korean automaker on May 21 that has now turned violent.

According to Ward's Auto, Roughly 4,000 non-union workers and management had been back in the company's Pyongtaek, South Korea, SUV plant attempting to get the assembly line back into operation. After less than 36 hours in the facility, more than 900 pipe and firebomb-wielding strikers surrounded the area and demanded they vacate under increasing threats. As the workers left, they were attacked by striking union workers poised outside (many noted that the national police service had withdrawn their riot squad on Saturday night leaving the 4,000 employees unprotected). All told, more than 70 non-union workers were badly hurt and many of those were hospitalized.

Although the company has offered jobs with affiliated companies, or promised future work to dismissed employees, the union immediately rejected the offer and has demanded to negotiate directly with the Korean government. The future doesn't look good. With no plans for the non-union employees to return and a viable restructuring plan unlikely, the Korean courts are scheduled to make a ruling by Sept. 15 whether to allow Ssangyong Motor Co. to keep operating or to liquidate its assets.

[Source: Ward's Auto]

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]

The strike last week by the International Brotherhood of Teamsters (IBT) against Performance Transportation Services (PTS) was the straw that broke the camel's back. The second largest car hauler in the United States was unable to survive the wage-related dispute, especially after filing for bankruptcy protection in 2006 and 2007. On Friday, PTS announced that it's stopping all operations and going out of business.

The effect on the industry overall will be minor. Automakers began rescheduled their deliveries last week when the strike was announced. As domestic vehicle production has slowed, excess transport capacity has been able to take up the slack and no major interruptions have been seen. It seems the striking workers have also been accommodated as the Teamsters are reporting that the "vast majority" of their 1,250 drivers have found work at other unionized locations. Still, any organized union thinking of striking in this economic climate should consider the possibility that such a move may result in pink slips for everyone.

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

The Canadian Auto Workers union and General Motors have been less than friendly with one another since the automaker announced it would be closing its Oshawa Truck plant, and the union promises to "fight on" despite ending a 13-day protest/blockade that prevented some 900 GM employees from going to work at the company's Canadian headquarters. It took a court injunction to end the blockade, but union representatives say they are planning their next move to stop GM from closing Oshawa Truck, which employs around 2,600 workers. But with truck sales tanking on account of high gas prices and less new home construction in the U.S., it seems unlikely the General will change its mind to scuttle the plant. There is talk of converting it to produce passenger cars in the near future, but even if the decision were made to do so today, the plant would still be closed for one to two years before it reopened. For now, however, GM's white collar workers in Canada can get back to work without enduring the rank and file gauntlet.

[Source: Automotive News - sub. req'd, Photo by Simon Hayter/Getty]

Performance Transportation Services (PTS), the second largest car hauler in the United States, is being hit by a strike from the International Brotherhood of Teamsters. The walkout began this morning after a bankruptcy court granted PTS permission for a 15-percent emergency pay cut to the workers.

The Michigan-based transport company has been in trouble for years. Once hired to move upwards of 2.7 million vehicles per year, including 10,400 vehicles per day for General Motors, PTS filed for bankruptcy protection in 2006 and in 2007. Now, with the automotive industry in a slowdown and diesel fuel prices skyrocketing, it needs wage concessions to remain afloat. Without any proposal on the table, the Teamsters walked off their jobs at 24 different facilities this morning. Both Ford and General Motors, who count themselves as clients of PTS, have said publicly that the strike won't immediately affect their shipments of vehicles across the country. PTS also handles some shipments for Toyota and other automakers, all of whom are working on contingency plans in case the strike goes on indefinitely.

[Source: The Detroit News]

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]

General Motors has been hit so hard by the ongoing American Axle strikes that it's stopped production of the GMC Yukon, Denali, Sierra heavy-duty regular and extended cab, its commercial-duty pickup and variants of Chevrolet trucks and Tahoes. All the while, the General is still negotiating with the UAW over local contracts at some of its most important plants. To ease some of its supply problems, General Motors has reportedly offered as much as $200 million to American Axle for the funding of employee buyouts, early retirements and for the support of wage buy downs. The offer, however, is conditional on a quick resolution between American Axle and the UAW.

Spokesman Dan Flores says that GM hopes "the offer will help bridge the gap between American Axle and the UAW and that they will be able to reach a mutually satisfactory agreement in the near future." Both the UAW and American Axle sound supportive of the investment; Bill Alford Jr., vice president and incoming president at UAW Local 235 says, "We're happy that General Motors is finally coming to the table and realizing that they have a stake in American Axle's future." For GM's sake and that of the striking workers, we hope the feuding companies find an amicable solution soon, though it seems unfortunate that GM, which is not exactly posting record profits itself, should need to cough up funding to make it happen.

[Source: The Detroit Free Press]

Local UAW contract negotiations aren't going well for General Motors, and today they took a turn for the worst as union members at the automaker's Fairfax assembly plant in Kansas walked off the job at 10AM EST. The bulk of GM's hot-selling Chevy Malibu are produced at the Fairfax plant, with a lesser number of the four-door sedan being built at the automaker's Orion plant in suburban Detroit. Last month GM sold 17,050 Malibus, a 39.5% increase in volume over April 2007. The local union in Fairfax had given GM a number of ultimatums, extending them since the first was established for April 22nd. We're not exactly sure what issue is at the heart of these contract negotiations, but The Detroit News reports that at least one bone of contention is the plant requesting seniority to snag transfer jobs, while the other issues remain undisclosed.

General Motors has been able to weather a 10-week strike by union members against American Axle, one of its main suppliers, as only production of large trucks and SUVs have been affected. Another strike at its Lansing Delta Township plant where the large Lambda CUVs are built has also only served to reduce inventories of vehicles that are seeing a slow down in sales. While the General can withstand a reduction of inventory for vehicles that currently aren't selling as well as they were before because of high gas prices and a slump in the housing market, the Malibu is gaining popularity with consumers month over month. The Fairfax and Orion plants were already producing at capacity to keep up with demand, so today's strike will assuredly hurt the automaker where it matters most: the bottom line. We'd expect GM to act quickly to end the strike, as money is being lost by the hour while Malibus aren't being built.

[Source: The Detroit News]

This morning, UAW workers at General Motor's Lansing Delta Township plant in Michigan have began a work stoppage, halting production of the Saturn Outlook, Buick Enclave and GMC Acadia. Both GM and the UAW are remaining mum on why the strike began, but it's likely due to an unsigned contract that covers work rules. However, according to the Lansing State Journal, 2,300 workers are employed at the plant, and while hourly workers are walking the picket line, salaried employees reported for duty.

[Source: Autoweek]

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]