American Axle has finally ended its labor dispute with the UAW, but it is only now becoming clear how greatly the three-month strike affected General Motors. In all, the UAW strike against American Axle cost the Detroit-based automaker $2.82 billion.
During the first quarter of ’08, the strike cost the auto giant $800 million, with losses in the second quarter tacking on another $1.8 billion, according to Automotive News. Add in the $215 million GM pledged to American Axle to end the strike — plus a few other odds and ends — and you get the grand total of $2.82 billion.
GM expects to regain only a fraction of the production it lost because of the strike this year. In the second quarter alone, GM lost about 330,000 production units.
The UAW’s strikes at GM plants in Kansas City and near Lancing, Michigan will likely cost the automaker another $200 million in lost production.
