Axle shortage causes more GM slowdowns
UAW STRIKE AT AMERICAN AXLE
Axle shortage causes more GM slowdowns
Automotive News | April 21, 2008 - 12:00 pm EST
DETROIT — The growing shortage of axles in North America forced General Motors to eliminate a shift today at its auto assembly plant in Oshawa, Ontario. GM also said it slowed production of four-speed transmissions in Ypsilanti Township, Mich.
Spokesman Dan Flores confirmed the moves this morning.
The Oshawa plant makes the Buick Lacrosse and Chevrolet Impala sedans.
The Oshawa plant has three shifts regularly and nearly 4,000 hourly workers. The Willow Run plant in Ypsilanti Township has nearly 1,500 hourly workers.
The 8-week-old UAW strike at five U.S. plants owned by American Axle and Manufacturing Holdings Inc. already has caused GM to slow or idle about 30 U.S. assembly and parts operations. Most of the operations make light trucks, but in the past few weeks, the axle shortage has caused GM to idle carmaking plants as well.
The UAW and American Axle made progress at the bargaining table last week, but no settlement has been reached.
Negotiators for the two sides took a break from talks on Saturday afternoon and were expected to continue bargaining Monday to try to end the strike by 3,650 workers, company spokeswoman Renee Rogers said.
Separately, GM’s own local labor issues have threatened additional production. A UAW strike at GM’s Lansing Delta plant near Lansing, Mich., began last week over local contract issues. The plant makes the hot-selling Buick Enclave, Saturn Outlook and GMC Acadia crossovers.
The UAW could strike at least three more GM plants this week, including the Fairfax assembly plant in Kansas City, Kan. Fairfax makes the Chevrolet Malibu, which won the 2008 North American Car of the Year award in January at the Detroit auto show.
In an e-mail message to Automotive News, Flores said, “Talks are continuing at all the locations where there are issues.”
GM and the UAW reached agreement on wages and benefits in a broad master contract last year, but most of the UAW’s locals have yet to complete agreements on work rules and other details that must be hammered out at the individual facilities.
On Friday, a UAW local representing workers at a transmission plant in Warren, Mich., agreed to extend talks beyond a union deadline indefinitely.
And a local representing workers at a metal fabricating plant in Grand Rapids, Mich., sent GM a strike notice on Friday, leaving it free to strike April 25.
Reuters contributed to this report
ENLARGE
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| The American Axle strike has begun to slow production of the Buick Lacrosse sedan. |
