American Axle Makes a Run for the Border

Frank Williams
by Frank Williams
american axle makes a run for the border

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.

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  • Redbarchetta Redbarchetta on Mar 21, 2008

    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.

  • Canzus Canzus on Mar 21, 2008

    Paycut?? They'll be lucky if they're still employed...

  • Captain Tungsten Captain Tungsten on Mar 21, 2008

    AA already supplies the Silao plant from Mexico. Wonder how much excess capacity they have?

  • Daro31 Daro31 on Mar 21, 2008

    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.