GM plans to resume production in aftermath of American Axle strike

Although UAW members still have to give their final approval to the strike settlement deal, GM's offer to end the American Axle strike is expected to pass through smoothly. Once it does, GM will be able to set about getting production back up to full speed. The company has already lost 272,203 units to the strike.

Already some steps to resume maximum output have been taken, with Monday's return to full production on one shift at the Moraine, Ohio facility. Today GM went back to capacity at the Arlington, Texas truck plant as well, reports Automotive News. Final approval of the American Axle deal by the UAW would mean GM could return all of its plants to full production, but GM warns it's still too soon to count on.

"We do have some plans in place, but right now all it would be is speculation," said GM spokesman Chris Lee.

In anticipation of the return to full-scale production GM has also reopened 10 parts and engine plants. Manufacturing components ranging from transmissions to castings to engines and other component pieces, the plants were brought back into service on Monday.

Production of as many as 13,300 more units may be lost this week if GM doesn't get more plants back online and producing by Friday the 23rd. Added to the total already lost, the total damage to GM production would amount to 285,503 units.

Competitor Ford has just announced it would need to cut production of its pickups and SUVs due to falling demand against a slumping housing market and rising fuel prices, so the lost production may not end up hurting GM as badly as it might seem on the raw numbers alone. As long as the company can keep supplying its dealers in time to meet demand, no real loss in terms of revenue or profit should surface.