Big Three Will Soon Begin Stockpiling Parts In Anticipation Of CAW Strike.(Brief Article)

According to recent reports, Big Three automakers will soon begin stockpiling vehicles and parts made in Canada for fear of strikes during tricky negotiations toward a new contract with Canadian unions this fall. General Motors Corp., Ford Motor Co. and DaimlerChrysler AG's Chrysler operations, burdened with excess capacity, are expected to ask the Canadian Auto Workers union for to allow some plants to close in Canada.

The U.S. automakers will begin building inventories of critical parts and vehicles made in Canada during the second and third quarters so they have enough supply in case the CAW decides to strike, they said. The U.S. automakers depend on Canada for some of their best-selling vehicles - - such as Chrysler minivans, Ford F-150 pickup trucks, and Chevrolet Impala sedans - - and key components in other vehicles such as Ford V8 engines.

"We think that they (the CAW) are going to be very firm in resisting the Big Three demands there," Greg Salchow, vice president of automotive research at Raymond James & Associates, an investment banking and securities firm, told Reuters.

"It looks like the CAW can shut down any or all of the Big Three if they choose to do so," he said.

Buzz Hargrove, the head of the Canadian Auto Workers union, said it is unlikely that a strike could be avoided.

In their current contracts, the Big Three agreed with the CAW and UAW to language prohibiting plant closures. But Ford said in January that as part of its massive restructuring to return to profitability, it intended to close one plant in Canada -- the Oakville, Ontario, pickup truck plant - - and four others in the United States. GM plans to close its Chevrolet Camaro and Pontiac Firebird plant in Ste. Therese in Quebec in September, and Chrysler has indicated it will likely close its Dodge Ram full-size van plant in Windsor, Ontario.

The CAW said it will vigorously oppose Ford's plans to close the pick-up truck plant, because Ford plans to increase production of the top-selling trucks in the United States. On the other hand, GM and Chrysler are closing plants in Canada because the vehicles they make there aren't selling.

GM, which is in the best shape financially among the Big Three, will likely be selected as the first automaker the CAW will negotiate with.

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