General Motors is reopening two assembly plants this month with axles supplied from Mexico by American Axle & Manufacturing Holdings Inc., sources have told Automotive News.
The 7-week-old UAW strike at five American Axle plants had shut GM's light-truck plant in Fort Wayne, Ind., until the company this week resumed production there of the Chevrolet Silverado and GMC Sierra. GM also intends to restart production of its full-sized pickups in Oshawa, Ontario, starting the week of Monday, April 21.
American Axle is supplying the plants from its factory in Guanajuato, Mexico, the sources said.
It is the same plant that has supplied axles and other parts throughout the strike to GM's Silao, Mexico, factory and an SUV plant in Arlington, Texas. But GM has enough inventory of SUVs at dealerships. Consequently, GM is shifting the axles to the pickup plants as it closes Arlington at the end of this week, the sources said.
GM spokesman Dan Flores said GM does not talk about where it gets parts. American Axle spokeswoman Renee Rogers declined to comment. About 3,650 UAW workers struck American Axle on Feb. 26, refusing company demands for concessions that would cut wages in half to $14 an hour.
On Monday, April 7, UAW President Ron Gettelfinger met with American Axle CEO Richard E. Dauch to try to jump-start talks. The leaders agreed to bring their full bargaining teams together for negotiations beginning Wednesday, April 9. Since it began, the strike has shut or crippled 30 GM plants. American Axle makes about 80 percent of the axles GM uses in North America.
American Axle's Mexican shipments to GM's Oshawa plant could become a practice pattern. UAW executives are worried that American Axle intends to supply axles from Guanajuato for the next-generation 2009 Chevrolet Camaro muscle car. Late last year, American Axle idled its Buffalo, N.Y., axle plant, which is just 120 miles from Oshawa, where the Camaro will be built. Guanajuato is about 2,000 miles from the assembly plant.
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