Chevrolet Malibu: Refilling the Pipeline
By Michelle Krebs May 21, 2008General Motors has reached a tentative local agreement with striking UAW workers at its
Fairfax, Kansas, plant, which builds the Chevrolet Malibu and the Saturn Aura. Both models have bucked the industry's downward trend so far this year.
Workers are voting on the contract Wednesday and could be back on the job, with the hot-selling Malibu back in full production, by Thursday. The strike and sheer popularity of the new Malibu have left GM short of supply. Edmunds.com's analysis shows the Malibu with an extremely low 26 days-to-turn rate, meaning it takes only 26 days for the Malibu to be delivered to the dealership and driven away by a new owner.
The contract with striking union workers in Kansas came about the same day that it was reported that GM was considering adding a third shift at its Orion Township, Michigan, plant to produce the Malibu. Early this year, GM added the Malibu to the Michigan plant's mix; it also produces the popular Pontiac G6.
The Kansas contract also comes as 3,650 UAW workers who have been on strike for nearly 12 weeks against supplier American Axle and Manufacturing Holdings Inc. are voting on -- and apparently approving -- a new contract.
The Kansas strike was supposedly over local issues like seniority, job classifications and outsourcing. However, most exports believe the Kansas strike as well as the strike by GM workers at a Michigan plant that builds the popular Buick Enclave, GMC Acadia, Saturn Outlook and upcoming Chevrolet Traverse was in support of the American Axle workers and an effort to pressure GM into getting involved in the American Axle strike.
Indeed, GM pitched in $218 million last Friday to get that strike against American Axle settled. GM is the supplier's largest customer and the strike forced GM to close or partially close 30 North American assembly plants due to parts shortages created by the strike. Those plants now are coming back onstream.
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