GM to idle truck plant due to American Axle strike
By Kevin Krolicki
DETROIT (Reuters) - General Motors Corp plans to idle a Pontiac, Michigan, truck assembly plant on Thursday because of a strike against American Axle %26amp; Manufacturing Inc, a key supplier, a person familiar with the matter said.
GM will stop production at the plant where it makes the Chevrolet Silverado and GMC Sierra full-size pickup trucks, according to the person, who asked not to be named since the decision to idle the plant had not been formally announced.
GM’s move comes a day after 3,600 United Auto Workers union workers went on strike against American Axle, shutting down its production.
The Detroit-based supplier relies on GM for about 80 percent of its sales and supplies axles for the automaker’s large truck and SUV lineup.
GM said it was monitoring the situation.
The UAW went on strike against American Axle on Tuesday after rejecting demands for steep wage cuts for the supplier, which was spun off from GM in 1994.
American Axle has said it wants to recoup more than $3 billion in investment in its U.S. plants by cutting hourly labor costs from nearly $70 per worker to between $20 and $30.
The UAW says that the supplier has repeatedly threatened to move production to Mexico in the absence of sweeping concessions and filed an unfair labor practices charge against the company on Tuesday with the National Labor Relations Board. Continued…
Tags: american axle, Auto, auto workers union, automaker, Chevrolet, general motors corp, gm, GMC, pickup trucks, ponti, Pontiac, reuters, s sales, united auto workers, united auto workers union
