As a follow up to our blog last week about the American Axle Strike, General Motors appears to be in a worse situation than previously thought. GM's flagship, the Chevrolet Silverado, which also won Consumer Reports top pick of 2008, is now caught in the action with the closure of three truck plants. The plants effected are the Flint and Ft. Wayne plants in Indiana, and Oshawa plant in Ontario. Currently, 3,600 American Axle workers are on strike, protesting their proposed wage and benefit reductions. Erich Merkle, director of automotive forecasting at IRN Inc. stated, "Their supply base is in a real weakened state right now,...That's going to be a real issue". In an interview last Friday, American Axle stated "the plants that the UAW is striking are not profitable", which is contributing to the strike. No word on when the strike will end have been announced.Source: Detroit Free Press.
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