RPTUPDATE 1GM to idle truck plant due to American Axle strike
(Adds detail, background, byline)
By Kevin Krolicki
DETROIT, Feb 27 (Reuters) - General Motors Corp (GM.N: Quote, Profile, Research)
plans to idle a Pontiac, Michigan, truck assembly plant on
Thursday because of a strike against American Axle %26amp;
Manufacturing Inc (AXL.N: Quote, Profile, Research), 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. Continued…
