The UAW strike at American Axle may be hurting General Motors’ production capacity, but nowhere is the damage as apparent as on the supplier’s financial book. American Axle reported a $27 million first quarter loss on Friday, largely due to the UAW strikes at five of its U.S. plants.
In comparison, during the same period last year, American Axle posted a net income of $15.7 million. According to Automotive News, the company’s revenue also sharply decreased, tumbling from $802.2 million in Q1 of 2007 to $587.6 million during the first quarter of 2008.
The UAW’s strike of American Axle began on February 26 and involves about 3,650 workers. The strike has caused General Motors — the U.S.’ largest automaker — to close 30 production facilities, including several light truck and passenger car plants.
