American Axle strike impacts GM
Wednesday, May 07, 2008 3:15 PM
Provided by
General Motors dealers, including some in the Buffalo area, have been notified by the automaker that it has suspended production of some 2008 full-size trucks and SUVs because of the American Axle strike.
The vehicles include GMC Yukon, Denali, Sierra heavy-duty regular and extended cab pickups, and GMC commercial heavy-duty trucks, Chevrolet Tahoes and variants for Chevrolet full-size trucks.
The company said it was not accepting more orders for the vehicles because of a shortage of axles caused by the two-and-a -half-month-old United Auto Workers strike against American Axle & Manufacturing Holdings Inc. plants in the Buffalo area and Michigan.
Content Continues Below
Duane Paddock, president of Paddock Chevrolet in Kenmore, said he received the GM notification on May 5.
"But (the suspension) won't have any major effect on us. We are able to fill orders from inventory and we have plenty of inventory," he said.
If the strike continues, there might be additional production cuts, a GM spokeswoman said.
GM said in its notice to dealers: "The allocation volume for the Dealer Order Submission Process cycles beginning May 8, 2008, and May 15, 2008, have been canceled."
That means orders won't be filled.
Meanwhile, talks continued May 7 in Detroit as top officials of the United Auto Workers and American Axle sought to end the strike that began on Feb. 26.
The dispute over wages and benefits has idled five of the company's plants and forced GM to stop or trim production at more than two dozen facilities.
Business First is surveying readers on the possibility that the American Axle strike might soon be settled. Votes can be casthere.
© 2008 American City Business Journals, Inc. All rights reserved.