As talks between American Axle and the UAW continue, AA has moved some of the production for GM's large SUV axles to Mexico. They've also moved axle production for Chrysler's pickups and SUVs South of the Border, allowing Chrysler to continue turning out Dakotas and Durangos nobody wants without interruption. The Detroit Free Press cites industry experts who predict that by the end of the month, the auto industry will have lost over 100k units in productivity which they'll never recover due to soft SUV and pickup sales. Whether the Mexican move is permanent or just a warning shot across the UAW's bow remains to be seen. But the AA workers who are now living on $200/week strike pay better hope the union bends a little, and soon. Otherwise they could be on the unemployment line instead of the picket line.
14 Comments on “American Axle Makes a Run for the Border...”
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Anybody else here that giant sucking sound?
hear, not here. need coffee.
Do AA workers have a “Job Bank”? I figured laid off AA workers would go there, and not the unemployment line.
I realize trucks generally have a lot of built-in profit and certainly mark-up, but how much money are they making with $10000+ off or $8000 with 0% for 60 months? I think the most important reason to have some production is to keep the build-orders going to loyal small/medium business owners who have to replace their trucks won’t be tempted to shop elsewhere. I wonder how much production capacity that Mexican factory has? Article didn’t clue that in.
bfg9k:
Anybody else here that giant sucking sound?
That’s just the sound of union janitors vacuuming up twice what they deserve.
Gm has a SUV plant in Silao, Mexico. Should be convenient.
I’d pack it all up for Mexico at this point. If the UAW wants to make this their Alamo, then so be it.
I figured China instead of Mexico, but for logistics Mexico does make more sense.
Oh yeah, I’m sure they are going to move their production back up to the higher cost site once the dust clears on this strike and after they’ve already moved and re-ppap’ed all the tools and processes.
This is a trial balloon for the rest of it. UAW leaders take note, your all not really indispensable.
Isn’t one of the reasons for this strike to keep them from shifting production to lower cost areas like Mexico, besides the paycuts and such. Things don’t look good. I feel for those guys looking at a huge paycut.
Paycut?? They’ll be lucky if they’re still employed…
AA already supplies the Silao plant from Mexico. Wonder how much excess capacity they have?
I guess the only way to survive this for the AA workers is to go their Mortgage lender, car finance company and the tax man. Try this, “My wages are in a forced reduction therefore I will have to pass this reduction on to you, I am sure you will understand.” Car company financing in particular should have no problem with the proposal. I think the Tax man should be glad to have anything rather than nothing as well. Seems logical doesn’t it.