Continuing UAW strikes leaves GM customers stranded

GM dealers and customers are beginning to feel the effects of the United Auto Worker strike at American Axle, as well as the UAW walkouts in two GM factories. Despite GM's most recent attempt to buy off workers from American Axle with a $200 million payout, the General has had to cut production back or idle as many as 30 of its assembly lines in North America, costing it over 100,000 vehicles in production and $800 million in revenue.

Customers who purchased GM vehicles before the strike are still waiting for their cars to be manufactured, while other customers are finding it impossible to find repair parts. According to The Detroit News, dealers are struggling to find spare parts and those customers buying built-to-order custom vehicles have been left stranded while the strikes continue. The situation has become so severe that some dealers have been forced to remove parts from brand new cars to make repairs to existing customer vehicles. The worst affected models have been GM's pickup truck and SUVs, which are already suffering from low demand caused by rising petrol prices.

While GM claims the American Axle strike is unrelated to the strikes at its two Chevy Malibu factories, GM's propensity for getting into worker-related strife is negatively affecting its operations severely. The General has already posted a $3.3 billion dollar loss for the first quarter of 2008, and can no longer afford to lose customers because of its already decreasing sales.

Negotiations between GM and its two factories are expected to continue, although no one can say for certain when they will end, or the ultimate effect on GM's profits for this year. Meanwhile, negotiations between the UAW and American Axle broke down on Friday, after American Axle revealed it wanted to close down three of its plants, rather than the two it had previously stipulated, much to the chagrin of the UAW.