GM: Another Plant Closes Due to Supplier Strike
March 06, 2008
General Motors said it would close another assembly plant, and still another is at risk for closing due to a strike by workers against Detroit-based supplier, American Axle & Manufacturing Inc.
At the same time, bargaining teams for the company and the United Auto Workers union, which represents the hourly employees at American Axle, were scheduled to resume negotiations Thursday, for the first time since the strike began Februrary 25, largely over wages.
GM said it would close its Wentzville, Missouri, plant later Thursday due to a shortage of parts caused by the strike. The Missouri plant produces the 2008 Chevrolet Express and 2008 GMC Savana cargo vans.
GM also confirmed an assembly plant in Janesville, Wisconsin, could be forced to curtail operations next week if the strike continues. The plant produces GM’s full-size sport-utility vehicles, including the 2008 Chevrolet Suburban and Tahoe and the 2008 GMC Yukon and Yukon Denali.
GM has already closed other plants that produce its full-size pickup trucks and SUVs, as well as the 2008 Hummer H2. In all, about a half-dozen plants and more than 20,000 employees have been affected by the strike.
GM business accounts for 70 percent of the parts made by American Axle, such as axles as well as drivetrain and chassis systems.
So far the strike has hit GM plants that make vehicles in plentiful supply. The strike will begin to really squeeze GM if it reaches plants such as the Arlington, Texas, plant that makes the just-launched 2008 Chevrolet Tahoe and GMC Yukon 2-Mode Hybrid models and the Lansing, Michigan, plant that makes GM’s popular crossovers, including the 2008 Buick Enclave, already in extremely tight supply with a 24-day turn-rate.
In addition to GM plants, the American Axle strike is having a trickle-down effect to other suppliers, which are closing due to the shutdown of the GM assembly plants to which they supply parts.
Posted by Michelle Krebs at 11:19 AM under GM , News | Comments (1) | digg this | Seed Newsvine
This is insane. The United Auto Workers union is patently irresponsible to force a strike that has so many negative repercussions throughout the automobile industry. How can the UAW credibly claim to represent the interests of workers? While the UAW gouges its pound of flesh from American Axle, hundreds more auto workers are going without needed wages and work hours, and the UAW has only itself to blame. Of course, this is an old story: It's largely because of the UAW that the competitiveness of the American auto industry has been hurt by spotty quality control on the one hand and exorbitant labour costs on the other. The American Axle strike won't help that situation either. The American auto industry is in desperate need of restructuring, and the UAW should be told to lead, follow, or get out of the way.
Posted by: Christopher | March 07, 2008 at 1:26 AM