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GM forced to shut down pickup truck plant because of strike at parts supplier American Axle

GM forced to shut down pickup truck plant because of strike at parts supplier American Axle

A strike at a key parts supplier is starting to have an impact on General Motors Corp., which said Wednesday it will temporarily close a pickup truck plant due to a parts shortage.
The Pontiac Assembly Center, which makes Chevrolet Silverado and GMC Sierra pickups, will stop production after the first shift Thursday due to the strike against parts supplier American Axle and Manufacturing Holdings Inc., GM spokesman Tom Wickham said.
The assembly plant has about 2,500 hourly and salaried workers. Hourly workers will get most of their pay under their contract with GM.
About 3,600 workers represented by the United Auto Workers at five American Axle plants went on strike early Tuesday in a contract dispute. The strike continued Wednesday night with no talks scheduled and each side saying it is waiting for the other to return to the bargaining table.
American Axle is using stockpiled parts to keep supplying GM and its other customers, although it would not say how long the supply will last. The company makes axles, drive shafts and stabilizer bars.
"We're meeting our customers' requirements. We continue to supply our customer needs to the best of our ability," American Axle spokeswoman Renee Rogers said Wednesday night.
GM accounts for about 80 percent of American Axle's business, with 10 percent going to Chrysler LLC and the rest to other automakers. The Detroit-based supplier makes all the axles for GM's full-size pickups and large sport utility vehicles.
Unless the strike is lengthy, GM is unlikely to be hurt by the parts shortage because the company has more than a 150-day supply of pickups, analysts have said.
But after a few weeks the plant closings could spread and affect companies that supply other parts for GM vehicles, they said.


Updated : 2021-04-14 09:09 GMT+08:00