RSS RSS Twitter Twitter
Leftlane - news, reviews, and info for the auto-industry
 
 

GM moves parts contract from American Axle

04/01/2008, 11:06 AM

By paulee

The five-week UAW strike at GM’s parts supplier American Axle prompted the North American carmaker to transfer a small contract to Axle rival Dana. Production of 30,000 prop shafts for GM’s small trucks should begin in a matter of weeks, according to sources at Dana. The strike stopped all of GM’s light-truck production in the US at seven plants, one of its passenger car plants is idling and now threatens a second car factory.

The move shows GM’s growing lack of patience with American Axle CEO Richard Dauch’s inability to resolve the strike, according to unnamed sources in an Automotive News report. North America’s biggest automaker can’t afford not to build its highly-profitable truck plants any longer, but the 30,000 prop shaft order is part of Axle’s current contract, on which it has the right of last refusal.

Dauch threatened to move his American Axle operation, which would affect 3,600 U.S jobs, to Mexico, so this isn’t likely to be the last we hear on complications regarding the matter.

The strike started as a result of American Axle asking the UAW for pay and benefit cuts so the supplier can stay competitive with others.

The latest plants affected by the strike include the Detroit-Hamtramck plant that assembles the Buick Lucerne and Cadillac DTS was idled last week, while the Lordstown, Ohio plant, where the Chevrolet Cobalt and Pontiac G5 are built could be idled by the end of this week. American Axle makes brake components for the four models.

    Print This Post

New car price quote

Zero obligation price quote from a trusted local dealer.
 
 

04/01, 11:25 AM

posted by:

Fletch

A pitful of single sourcing on key components. On the other hand, companies want to maximize their tooling cost by keeping one supplier running 3 shifts.

I will be surprised if both sides settle on a contract. Moving the operation to their Mexico facility could take months though.

Intersting time to strike when unemployment in Michigan is widespread.

04/01, 11:39 AM

posted by:

RaineMan

Yes indeed. What a great thing. The American automotive industry is doing poorly as is, so the union goes on strike and puts an even bigger hurt on GM. I guess the people at American Axle didn’t think about the thousands of jobs that would be effected when they walked out.

Way to go guys. When customers can’t find Silverados & Cobalts on the lot… it’ll be a quick trip right down the road to Toyota, where there are plenty of Tundras and new Corollas to go around.

04/01, 12:22 PM

posted by:

Jon Luc

It’s the union heads that need to be shot. They have to something to justify their positions in the union. They don’t care about jobs, or their union members, they just care about the power they have. It’s a disease.

04/01, 12:25 PM

posted by:

A4

brake components, throw brembos on all the cars and mark ‘em up as special edition

04/01, 12:27 PM

posted by:

johnnycanuck

Union leaders are well known for not being able to see the forest for the trees, but these guys can’t even find the park.

04/01, 12:46 PM

posted by:

jackjimturkey

This is the right move

04/01, 12:54 PM

posted by:

murderedout

Fletch, Uneployment is widespread all over America, Michigan is not alone. California has more home foreclosures and a higher unemployment rate than Michigan. Once Michigans economy fell, the rest fell like dominos. Happened in the 80s and it’s happening now. Due to high gas prices and idiots buying foreign garabage.

04/01, 12:57 PM

posted by:

murderedout

The reason why Americas economy is bad is because 1 out of every 6 jobs in North America has something to do with the auto industry, take Michigan out of the US and the economy would collapse and we would go into a global depression.

04/01, 1:14 PM

posted by:

Fletch

I meant to say “pitfall” up top, don’t know what I was writing.

It’s my belief that UAW assembly plants and suppliers have marked themselves as a huge liability. I would not source to them. Awful news for Michigan. On a brighter note, with the weak dollar, the European and Japanese transplants should start sourcing more parts to the US. I expect they will go to suppliers in the south east where they are not union.

04/01, 1:19 PM

posted by:

DeansterTJ

Amazing how beggars are choosers. This society has no shame. What the **** happened to honest pay for honest work? Every asshole out there wants a handout these days.

04/01, 2:01 PM

posted by:

Shismo

Yet another moronic union. Lovely.

04/01, 4:37 PM

posted by:

400horseSS

“The move shows GM’s growing lack of patience with American Axle CEO Richard Dauch’s inability to resolve the strike”………………..but you bitches blame the union huh.

04/01, 5:41 PM

posted by:

C6Racer

At least GM trucks will have Dana drive shafts which is a better brand, IMO. The American Axle slip yoke didn’t do too well in my dad’s truck. There was even a TSB out for it recommending a replacement for something better. Dana will surely fit the bill.

04/01, 5:42 PM

posted by:

C6Racer

And yes, the union is ALWAYS to blame. No question about it.

04/01, 6:31 PM

posted by:

400horseSS

^^^DUMBASS^^^^

04/01, 7:02 PM

posted by:

jayjc08

I’m glad to see GM move it’s parts to someone who’s willing to take the job. The bickering on their part because of less shifts and slightly lower wages/packages is just pure greed. Put them on a lean mix. Same with this other corporation, Plastech, filing bankruptcy the very day before Chrysler plans to pull out their parts. The Union and many of the Big Three’s contractors are parasites.

04/01, 7:50 PM

posted by:

400horseSS

And what does that make the millionaire management club then, Frugal, Underpaid or very lucky to get paid assloads of money for nothing.

04/01, 8:00 PM

posted by:

1c3d0g

jayjc088: agreed 100%. These f*ckers should PAY GM for the misery they’ve caused them and their customers!

 
 
You need to log in with your user name and password before you can leave comments.

    

Forgot your Password?

Don't have a user name yet? Simply fill in the form below and click the link provided in the
confirmation email. You must supply a valid email address to complete the registration process.

  
 
 
 
 
  • Login
  • About
  • Contact
Please note that you need to log in with your user name and password before you can leave comments.
  

login
cancel
Forgot your Password?
Don't have a user name yet? Click here to register now.

Simply fill in the form below and click the link provided in the confirmation email. You must supply a valid email address to complete the registration process.

  
submit
cancel
Leftlane is the leading source for automotive industry and vehicle news, new car research, future vehicle information, and reviews. Read by car shoppers, driving enthusiasts, autoworkers, executives, and investors, the website is updated throughout the day with the very latest auto news - as it happens.

Leftlane also provides consumers with accurate and media-rich information on every car currently on the market. In-market shoppers can review specs, read overviews, view high-resolution images, watch videos, and estimate pricing. No other automotive publication brings together the same degree of timeliness, thoroughness and accuracy as Leftlane.
 
submit
cancel