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Several GM Plants Remain Idle After Strike

The three-month-long strike against American Axle slowed or idled as many as 30 of GM’s assembly and parts facilities. Much of the operations that remain affected are parts or assembly plants for GM’s slow-selling light trucks.

May 28, 2008
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Production at 19 General Motors plants remains stopped or slowed as the automaker enters its first week after United Auto Workers members approved a four-year contract with GM’s axle maker.

GM said Tuesday, May 27, that nearly one-third of its affected plants remain shut down after UAW rank and file voted last week to ratify a four-year contract with American Axle & Manufacturing Holdings.

The three-month-long strike against American Axle slowed or idled as many as 30 of GM’s assembly and parts facilities. Much of the operations that remain affected are parts or assembly plants for GM’s slow-selling light trucks.

The six GM plants that remain shut down are:

• The DMAX engine plant in Moraine, Ohio, which produces truck engines for GM’s joint venture with Isuzu Motors.

• The Flint, Michigan, assembly plant, which makes the GMC Sierra and Chevrolet Silverado pickup.

• The assembly plant in Janesville, Wisconsin, which makes the Chevrolet Suburban and Tahoe and GMC Yukon and Yukon XL SUVs.

• The assembly plant in Mishawaka, Indiana, which is owned by AM General but makes the Hummer H2 SUV for GM.

• The assembly plant in Pontiac, Michigan, which also makes the GMC Sierra and Chevrolet Silverado.

• The Ramos Arizpe engine plant in Mexico.

GM spokesman Dan Flores said the automaker’s production plans differ by plant and will depend on when GM again receives parts from American Axle.

American Axle spokeswoman Renee Rogers said the supplier resumed production Tuesday, but she didn’t know whether production was “fully revved up.”

As of May 1, there was at least a three-month supply of most GM trucks in the United States. But Flores said GM won’t stall in starting up production at the remaining plants despite high inventories of light trucks.

GM will rely on already-planned cuts to keep production in line with demand, Flores said. GM said in recent weeks that it planned to make cuts at its Flint assembly, Janesville assembly and Pontiac truck plants.

GM said last week that it lost about $2.82 billion before taxes as a result of the 12-week-long strike.

After hitting a 26-year low last week, GM stock continued to drop Tuesday, closing at $17.42, down 18 cents, or 1.2 percent. GM stock was trading at $24.28 when the strike started.

Filed by Craig Trudell of Automotive News, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.

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