UPDATE 2GM to idle truck plant due to American Axle strike
(Adds details, background, analyst and S%26amp;P comments)
By Kevin Krolicki
DETROIT, Feb 27 (Reuters) - General Motors Corp (GM.N: Quote, Profile, Research)
plans to idle a Pontiac, Michigan truck plant on Thursday
because of a strike against supplier American Axle %26amp;
Manufacturing Inc (AXL.N: Quote, Profile, Research), a person familiar with the plan
said.
The GM plant shutdown marks the first knock-on casualty of
the strike by the United Auto Workers against American Axle
amid signs that the two sides remained far apart on the key
issue of whether and how deeply the supplier will be able to
cut wage and benefit costs.
GM will stop production at the Pontiac, Michigan 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 had not yet been formally announced.
GM’s Pontiac plant employed just under 3,000 hourly workers
represented by the UAW as of April last year.
Analysts have said a short strike at American Axle could
allow GM to run down inventories of unsold trucks and SUVs but
have cautioned that a longer work stoppage could be costly.
The shutdown of the facility would come just two days after
3,600 UAW-represented workers in Michigan and New York went on
strike after contract talks between the two side collapsed.
Negotiations had not resumed on Wednesday and UAW local
officials involved in the talks had returned to their
bargaining units, suggesting that no quick resumption of talks
was on the horizon. Continued…
