American Axle Strike Will Idle Hummer H2 Plant; GM Doesn't Panic — Yet
March 03, 2008

By Joe Szczesny

DETROIT — The strike at American Axle & Manufacturing Holding Inc. in Detroit is continuing to chew into General Motors production as two more assembly plants have run out of key components.

GM spokesman Tom Wickham said the strike is expected to shut the assembly line used for the Hummer H2 on Tuesday. Hummer H2 is built for GM at an AM General plant in Mishawaka, Indiana, which is expected to run out of parts supplied by American Axle.

Despite the latest closings, GM Chairman Rick Wagoner told a reporter at the Geneva Motor Show that the automaker isn't in a panic yet. GM is still keeping a couple of plants running, producing trucks and SUVs that use American Axle parts and has good inventories of vehicles affected.

GM also closed an assembly plant in Moraine, Ohio, which builds midsize sport-utility vehicles sold by Chevrolet, GMC, Saab and Isuzu, though workers were told to report Tuesday for training sessions, Wickham said.

The new shutdowns now mean the strike by 3,650 American Axle employees, which began a week ago, has closed a total of six assembly plants across the Midwest. The GM plants in Pontiac and Flint, Michigan, Fort Wayne, Indiana, and Oshawa, Ontario, Canada, all closed last week because of the parts shortages created by the strike.

GM sources said at least two more plants — one in Arlington, Texas, and one in Janesville, Wisconsin — might have to close by the end of the week.

Mark LaNeve, GM vice  president of sales, service and marketing, told reporters and analysts during a conference call the shutdowns have had no impact so far on GM’s sales. Dealers have more than enough vehicles on hand to keep up with customer demand, LaNeve said.

“I don’t know how long this thing is supposed to last,” he said. “It’s not a threat to our daily business. If it persists for a long time it could be,” he said.

Efforts to end the strike have gone nowhere.

“Our union is a responsible organization, and we’ve worked through complex problems at Chrysler, Ford, GM, Delphi, Dana and other companies,” said UAW President Ron Gettelfinger. “But negotiations can’t be a one-way street,” he said.

Richard E. Dauch, American Axle chairman, has said the company needs a contract that will keep the company competitive. “AAM cannot accept terms and conditions that put the company at a significant competitive disadvantage in the U.S. automotive supply industry," he said.

Michelle Krebs contributed to this report from the Geneva Motor Show.

Photo 1: Hummer H2 could find itself between a rock and a hard place if the American Axle strike becomes dragged out.

Posted by Michelle Krebs at 9:07 PM under Business , Companies , GM | Comments (2) | digg this | Seed Newsvine