GM expects $1.8B hit from American Axle strike

[Omaha Steve]

Source: Associated Press

DETROIT (AP) — General Motors Corp. said Friday the nearly three-month strike at parts supplier American Axle and Manufacturing Holdings Inc. will cost the automaker about $1.8 billion before taxes in the second quarter.

GM also said in a filing with the Securities and Exchange Commission that it expects to produce 230,000 fewer vehicles during the quarter due to the strike, which crippled its production of large sport utility vehicles and pickups.

"We anticipate only a portion of this lost production will be recovered, due to the current economic environment in the United States and to the market shift away from the types of vehicles that were impacted by the action at American Axle," GM said in the filing.

GM previously said it lost $800 million in the first quarter and produced 100,000 fewer vehicles in that period because of the strike.


Read more: http://money.excite.com/jsp/nw/nwdt_rt_top.jsp?news_id=ap-d90rdp180&

---

GM used to make everything but rubber in it's own plants. Then it started spinning off pieces like American Axle. They did it to themselves.

[BeatleBoot]

1. $ 2.6 Billion Overall per the Detroit News

http://www.detnews.com/apps/pbcs.dll/article?AID=/20080523/AUTO01/805230422

American Axle strike cost GM $2.6 billion

Eric Morath / The Detroit News

The 87-day American Axle strike cost General Motors Corp. $2.6 billion, the automaker said in a Security and Exchange Commission filing this morning.

The strike, which ended Thursday evening, is expected to cost GM $1.8 billion in the second quarter, which ends June 30. That is on top of an $800 million loss due to the strike in the first quarter, which the company previously reported.

The strike cost GM 330,000 units of production, including 230,000 units this quarter.

<more>

[sam sarrha]

2. i worked at Boeing's only Non-Union facility.. they told us during 1st day Orientation that we could...

join the Union, but if we ever considered to strike.. the company would holdout long enough that we would never see a penny of any raise in our lifetime...

if you were a union member you couldnt attend company activities.. anual picnic, free tickets to the Ft Biggs Air Show.. etc

[Indydem]

3. This started with Lee Iacocca....

He spun off Chrysler's many divisions to avoid having to employ union labor and pay pensions and health care to those supplying the parts to Chrysler.

Its sound business strategy, until it costs you 1.6 billion. They would have been better off to pay a decent wage to the union employees and maintain production.

[madmom]

4. And of course it says nothing about the big $ Wagoner took home.

[pattmarty]

5. I don't want to go religious here, but ALL these companies.......

....are reaping what they sowed. My opinion is that the companies here go for the big bucks right now and don't give a fuck about the future.