Strike at American Axle hits parts supply
By Tom Stundza -- Purchasing, 3/5/2008 11:49:00 AM
The United Autoworkers union strike at auto parts maker American Axle & Manufacturing is forcing assembly cutbacks across the U.S. and Canada. The strike has forced General Motors to shut down six pickup and SUV plants in Flint and Pontiac, Mich.; Fort Wayne and Mishawaka, Ind.; Moraine, Ohio, and Oshawa, Ont., Canada.
J.D. Power and Associates’ Automotive Forecasting unit advised clients that American Axle & Manufacturing has been stockpiling parts ”in an attempt to minimize the effects felt by its customers” if a strike happened. But the company only had enough inventory big enough to cover approximately five days of vehicle assembly and the strike now is in its second week.
Negotiations between the UAW and American Axle broke off Feb. 25. Hours later, 3,650 UAW-represented American Axle workers walked off the job, protesting demands for wage and benefit cuts that the company says it needs to compete. The firm makes axles, drive shafts and stabilizer bars. If the walkout isn’t over by next Monday, GM will have to stop producing four-speed transmissions at its Toledo transmission plant.
And, the Detroit Free Press says the UAW strike is having a domino effect throughout the auto industry since several Tier One suppliers, including Lear and Delphi, are laying off hundreds of workers. “It's very difficult for suppliers to adjust their own operations, not knowing when production is going to resume," Charles Moore, senior managing director, at Birmingham-based turnaround firm Conway, MacKenzie & Dunleavy, tells the newspaper.
Other news reports say that the strike soon could jeopardize such other key automotive production programs as BMW’s Spartanburg, S.C., plant, where parts are getting scarce for X6 (SUV) production.
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