UAW STRIKE AT AMERICAN AXLE

American Axle fills some orders in Mexico
 

Chrysler continues to operate truck, SUV plants

Robert Sherefkin
and Philip Nussel

Automotive News | March 20, 2008 - 3:25 pm EST

DETROIT — Strike-bound American Axle & Manufacturing Holdings Inc. has moved some of its parts production for Chrysler LLC from the United States to its operations in Mexico.

“It was a way to protect us from being shut down after the strike began” Chrysler spokeswoman Michele Tinson said today.

Chrysler is American Axle’s second-largest customer — well behind General Motors.

Unlike GM, Chrysler has not been forced to idle operations because of the 3-week-old strike at American Axle. GM has idled seven truck or SUV assembly plants and either shut down or slowed operations at 22 other factories.

Chrysler plants in Newark, Del., and Saltillo, Mexico, which make trucks and SUVs, have been able to continue production indefinitely because American Axle moved work to its Mexican operations. Newark makes the Chrysler Aspen and the Dodge Durango. Saltillo produces the Dodge Ram pickup truck line.

American Axle has a gear and axle plant along with a forging operation in Guanajuato, Mexico. The operations have been expanded six times since Axle first began work there in 2000.

American Axle spokeswoman Renee Rogers declined to comment.

GM spokeswoman Deborah Silverman also declined to comment. But industry sources say GM is getting some axles from Mexico — as it did before the strike.

Brett Hoselton, an auto analyst at KeyBanc Capital Markets, said in a report published Wednesday, March 19, that American Axle has begun making axles for GMT900 SUVs in Mexico. But it was unclear whether this production was for GM’s plants in Mexico or whether the output was moved from U.S. operations as a response to the strike.

About 3,500 UAW members struck at five U.S. American Axle plants on Feb. 26. The union and company remain far apart on wages and job security issues. Negotiations have been on-again, off-again, with no significant progress reported.

GM and other automakers are shutting down production for a four-day weekend beginning Friday for the Easter holiday.