View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
May 29, 2008

US: American Axle axing 2,000 after wage deal

American Axle and Manufacturing Holdings will cut its US hourly work force by 2,000, or about 55%, as a result of a new contract ratified last week by the United Auto Workers union.

American Axle and Manufacturing Holdings will cut its US hourly work force by 2,000, or about 55%, as a result of a new contract ratified last week by the United Auto Workers union.

The auto parts maker said its total hourly labour costs would drop from US$73.48 before the new contract to between $30 and $45, the Associated Press (AP) reported, adding that the cost would vary by factory because they have different wage rates.

The news agency noted that the contract agreement came after a nearly three-month strike against the company by 3,650 US workers that crippled General Motors’ production of pickup trucks and big sport utility vehicles.

American Axle began bringing its factories back on line this week, the report said.

Chief financial officer Mike Simonte told the news agency the strike would cost the company $125m to $130m in lost profits this year though it expects to save $300m per year with the lower labour costs.

The company also said most of the job cuts would come through buyout and early retirement offers, although there would be some involuntary layoffs.

The buyouts and layoffs had been expected by workers and unions. During the strike, AAM had actively recruited new workers at its new wage rates, in expectation that existing workers facing substantial cuts would accept severance deals when offered after the dispute ended.

Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Monday. The industry's most comprehensive news and information delivered every quarter.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Auto