Straightline - American Axle strike forces GM to shut truck plant

American Axle strike forces GM to shut truck plant

GM had to shut their Pontiac, MI truck assembly plant due to the strike at American Axle. The plant builds full-size SUVs and pickup for Chevy and GMC.

Not only is the strike hurting GM, but it could soon affect Chrysler as well, as they also supply parts for Dodge trucks.

“It is unfortunate that a market-competitive labor agreement for American Axle’s original U.S. locations could not be reached,” said company president Richard Dauch. “All of the changes we have proposed have been accepted by the UAW in agreements with our competitors in the United States.”

Full story here.

Here's AutoObserver's take: GM Closes Plant Due to Supplier Strike

Posted by Bob Feb 28, 2008 7:39 am

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Comments

ateixeira - Feb 28, 2008 12:53 pm (#1 Total: 4)

Recife, PE, Brazil

GM has a pretty big supply of trucks. This may take a while.

Pass the popcorn.

billt9 - Feb 28, 2008 3:40 pm (#2 Total: 4)

"The company earned $37 million in profits last year with sales of $3.25 billion"
That's really poor earnings. They're close to financial instability.
That's a profit margin of 1.1%. Really bad income.
A profit margin of 1.1% does call for restructuring.

Oh well, more jobs to Mexico if the UAW can't understand a company is very unstable with a 1.1% profit margin.

ewilfong - Feb 28, 2008 10:15 pm (#3 Total: 4)

To expand on billt9's thought, the above earnings comment was prefaced by this:

"American Axle can afford to treat workers fairly."

axlestriker - Mar 18, 2008 8:01 pm (#4 Total: 4)

Let's face it - we won't win this one. AAM has sufficient capacity and money to wait this one out. The only hope us union brothers and sisters can hope for is a large enough buyout to surivive a few years. I am tired of working with lazy, uneducated coworkers and the minute the offers are made, I'm out of here. If anyone thinks different, let's get our union leadership on the picket lines every day and take the strike pay we receive. They are out of touch, out of reality, and out-to lunch when it comes to the economy and the new world order. Someone will need to turn the UAW lights off once all the US factories close. It will be our own fault and greed.