Posted on Thursday 8 May 2008
A lack of supply of key parts has caused GM to stop producing some of its best-selling models, such as the GMC Yukon, Denali, Sierra heavy-duty pickups and others.
American Axle’s ten-week strike is one of the primary causes for the short supply, and GM hopes this offer will get the strike over and production back on track.
So far GM has had to cut production back or idle as many as 30 of its assembly lines in North America, which has cost GM over 100,000 vehicles in production and $800 million in revenue.
The UAW seems happy about the offer, most of which is intended to cover the costs employee buyouts, early retirements and wage buy downs, reports The Detroit News.
However, GM still has other strikes choking its supply line. The UAW strikes at two Chevrolet Malibu plants are slowing production of a model already in short supply, and are also affecting production of several crossovers also produced at those plants.
The UAW says the strikes are unrelated to the American Axle matter, and are instead based on local contract issues. Whatever the cause for the strikes, GM has cut back forecasts for its light truck production through the end of the year, reports Automotive News, despite an increase in supply of axles from Mexico to meet 50% of GM’s need.