GM idles 3 more plants due to supplier strike

Fri Feb 29, 2008 2:37pm EST
 
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By Kevin Krolicki

DETROIT (Reuters) - General Motors Corp said on Friday it would idle three more assembly plants because of parts shortages caused by a strike against its supplier American Axle & Manufacturing.

GM said it would idle truck plants in Flint, Michigan; Fort Wayne, Indiana; and Oshawa, Ontario at the end of the second production shift on Friday night.

Taken together the three plants employ about 9,500 workers. GM had already closed a fourth plant in Pontiac, Michigan because of shortages in shipments of axles and related components from Detroit-based American Axle.

The plant shutdowns showed the spreading impact of the strike by the United Auto Workers against American Axle that began this week after contract talks broke down over wages.

Including GM's Pontiac plant, some 12,500 workers at the No. 1 U.S. automaker devoted to production of its Chevrolet Silverado and GMC Sierra pickup trucks have been laid off because of the strike at the supplier.

Other GM facilities at risk due to their reliance on American Axle parts include plants devoted to SUV production in Arlington, Texas; Janesville, Wisconsin and Silao, Mexico.

GM spokesman Tom Wickham said the automaker was monitoring the situation, but had no immediate planned plant closures.

The GM action corresponded with a parallel labor-related plant closure at smaller rival Chrysler LLC.   Continued...

 
<p>A General Motors employee inspects Chevrolet Impalas on the production line in Oshawa, Canada August 21, 2006. General Motors Corp said on Friday it would idle three more assembly plants because of parts shortages caused by a strike against its supplier American Axle &amp; Manufacturing. REUTERS/J.P. Moczulski</p>