Hits GM plant by US Axle strike
A strike at a vital parts supplier is starting to have a crash on General Motors Corp., which said Wednesday it will provisionally close a pickup truck factory in Pontiac due to a parts deficiency.
The Pontiac Assembly Center, which builds Chevrolet Silverado and GMC Sierra pickups, will production stop after the first move Thursday due to the strike against pieces supplier American Axle and Manufacturing Holdings Inc., GM spokesman Tom Wickham said.
The plant assembly has about 2,500 hourly and paid workers. Hourly employees will get most of their pay under their agreement with GM.
About 3,600 workers signified by the United Auto Workers at 5 American Axle plants went on strike early Tuesday in an agreement dispute. The strike sustained Wednesday night with no discussion scheduled and each part saying it is waiting for the other to come back to the bargaining table.
AXL (American Axle) is using stockpiled parts to maintain supplying GM and its other clients, although it would not declare how long the supply will last. The corporation makes axles, drive beams and stabilizer bars.
“We’re conference our customers’ requirements. We persist to supply our customer wants to the best of our skill,” AXL spokeswoman Renee Rogers said Wednesday night.
GM (GM, Fortune 500) financial credit for about 80% of American Axle’s business, with 10 present going to Chrysler LLC and the rest to other automakers. The based supplier in Detroit makes all the hinges for GM’s full-size pickups and big sport utility vehicles.
Unless the strike is long, GM is unlikely to be upset by the parts shortage because the business has more than a 150-day supply of pickups.
Via: money.cnn.com