Hit by a shortage of components made by strike-hit American Axle and Manufacturing (AAM) that has already idled several light truck plants, General Motors is now facing up to more car plant closures, according to the latest reports.
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Trade newspaper Automotive News (AN), which earlier reported the Monday (31 March) closure of GM’s Detroit-Hamtramck assembly plant, which builds the Cadillac DTS and Buick Lucerne sedans, and the likely idling of Chevrolet Cobalt and Pontiac G5 output in Lordstown, Ohio, as soon as early this week, on Tuesday said the automaker would have to shut production by mid-April of its strong-selling new Chevrolet Malibu at Orion, Michigan, if the AAM strike continues.
A United Auto Workers (UAW) union official told the paper GM is fast running out of an AAM-supplied knuckle used in the rear suspension of the Malibu and Pontiac G6 sedans which the plant makes at the rate of about 1,000 a week. The official also said the shortage will also shut GM’s main Malibu-assembling Fairfax plant in Kansas City by mid-April.
“I’m hoping GM can help resolve the strike before that happens, but we’ll stand by our striking union brothers and sisters at American Axle if not,” the official told Automotive News.
The paper added that the strike – which began on 26 February – has also idled a Toledo, Ohio, plant making transmissions for GM SUVs such as the large Cadillac Escalade.
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By GlobalDataThe threat to Malibu output is ill-timed for GM which is on a roll with the latest-generation model introduced for the 2008 model year, replacing two generations of lack-lustre designs that were largely a staple of US rental car fleets.
Automotive News noted that the mid-size Chevy is currently the “hottest” vehicle in GM’s range and won the 2008 North American Car of the Year award at the Detroit motor show in January. Chevrolet sold 27,001 Malibu sedans in January and February, up 29.1% from the same period a year ago, AN added.
But the paper noted the Pontiac G6 – offered in a range of body styles including a steel-roof coupe-cabriolet – is selling even faster: 30,843 in January and February, up 32.7% from 2007.
The report said the strike has so far forced GM to idle seven truck plants, one car assembly operation and 23 parts plants while suppliers have also slowed or idled several other plants.
By the end of this week, GM is projected to lose production of 105,397 vehicles, including 3,480 sedans at Detroit-Hamtramck, Automotive News added.
The Associated Press (AP) news agency said earlier this week that AAM had advertised in Sunday newspapers for potential replacement workers.
An ad in the classified section of The Oakland Press of Pontiac read in part: “Employment offered to applicants responding to this advertisement will be to fill anticipated attrition replacement openings after negotiations or in place of employees involved in this strike.”
The UAW responded by calling for a mass picket on Monday (31 March) outside American Axle and Manufacturing Holdings’ Detroit headquarters.
AAM spokeswoman Renee Rogers told AP that, besides Detroit, the company ran similar ads in newspapers near other American Axle facilities in Three Rivers and the Buffalo, New York state, area.
“We expect that once an agreement is reached with the UAW a significant number of associates will participate in buyouts and early retirements. We are currently preparing a pool of potential new associates,” she was quoted as saying.
