Automotive News [sub] reports that the growing paucity of parts from American Axle has "forced General Motors to eliminate a shift today at its auto assembly plant in Oshawa, Ontario. GM also said it slowed production of four-speed transmissions in Ypsilanti Township, Mich." The obvious question: who cares? Aside from no one in the first instance (LaCrosse) and fleet buyers in the second (Impala). OK, that's a bit harsh (Mikey). But the fact that the slowdown/shutdowns caused by the eight-week old United Auto Workers' (UAW) strike at American Axle hasn't got GM execs in a lather is either a condemnation of the affected products' appeal or management acumen, or both. Anyway, for those of you keeping score, the AA strike has now impacted 32 GM factories. And then there's the unresolved UAW strike at Lansing Delta (Enclave, Outlook, Acadia) and the looming strike at Fairfax (Malibu). What was that about bang vs. whimper?

A strike deadline passed today for GM's Warren transmission plant, with negotiators agreeing to work into the weekend to reach an agreement. This glimmer of hope comes as GM endures strikes at suppliers American Axle and Alliance Interiors as well as its Lansing Delta Township factory. Detroit News reports that the Warren negotiators are deadlocked over implementation of the new two-tier wage structure, a nationally negotiated deal which has run caused numerous issues (including the Delta Township strike) as individual plants struggle to determine which jobs are "core" to vehicle production and which aren't. The American Axle strike has stopped or slowed production at some two dozen GM plants, leaving GM's entire supply chain at risk as negotiators slowly fumble towards an agreement. If negotiations at the Warren plant break down over the weekend, the 1k workers there could join the thousands of striking UAW workers, leaving GM without production of four and six-speed transmissions.

GM Canada is going on the offensive re: its contract negotiations with the Canadian Auto Workers (CAW) union this September. They've released a "background paper" claiming the total cost (wages, pensions, benefits, etc.) for one hour's work in Canada runs the automaker $77.75. Instead of comparing those wages to other industries in Canada or "core" U.S. GM workers' ($70/hour), the paper uses the U.S. transplants for comparison ($47.50/hour). Report on Business quotes GM Canada spokesman Stew Low: "The status quo just won't do." CAW president Buzz Hargrove responded with righteous indignation. "I've told Rick Wagoner, I've told the head people at Ford and Chrysler – all of them – that there's absolutely no way in hell [we'll agree to reductions in wages, health care benefits or pensions]." The CAW says it's willing to "look at" the amount of paid time off they get. GM claims CAW employees get 155 more hours per year off and 16 minutes break time a day than… the transplants. Fair enough?

Yesterday, managers at GM's Delta Township plant (Buick Enclave, Saturn Outlook, GMC Acadia) sent workers home after a strike at Alliance Industries left them carpetless. Workers were told to report back to work this morning in case the parts were there. This morning, carpets were the least of GM's problems. The Detroit Free Press reports that UAW workers at Delta Township walked out on strike over the terms in their local contract. It's too early to know what effect the walk-out will have or how long it'll last, but between this and the strikes against American Axle and Alliance Industry, the UAW is taking a big bite out of GM's business. While The General probably welcomed the shutdowns at first– it gave them a chance to clear out a backlog of trucks– they're starting to feel the pressure. Can they afford to dig into their diminishing cash hoard relieve it? Can they afford not to?

The Detroit Free Press reports that workers have launched a strike at the Alliance Interiors plant in Delta Township. The strike comes after months of negotiations on the plant's first labor contract. The strike means that interior components will not be delivered to GM's Lansing Delta Township factory.  Enclave/Acadia/Outlook CUV production will likely be idled there… soon. "I'm assuming right now that they (GM Lansing Delta Township) are being shut down," says UAW Local 652 President Chris (Tiny) Sherwood, noting that workers from other Lansing factories, including Cadillac's Grand River plant, have joined the picket line in solidarity. The Lansing Delta Township plant could face a strike of its own by as early as 10am Thursday, as safety and working condition issues there remain a sticking point in labor negotiations. If Lansing Delta Township goes off-line, other Lansing-area suppliers could see demand dry-up for their components. Ryder Logistics, Android Industries and Plastech are all facing work stoppages if Lansing Delta Township ceases production. With the American Axle strike already wreaking havoc on the General's supply chain, this strike couldn't have come at a worse time for GM.

The Chevy Impala showed a 1.8 percent gain in sales in March. At the first of April, GM only had a 21-day supply on the lots. The factory in Oshawa, Ontario has been running three shifts with Saturday overtime for several months. So why are they suddenly cutting back on production? An industry source (yes, we have them too) tells us that GM's canceled Saturday overtime and laid off the third shift until further notice. Rumor has it the American Axle strike is affecting the plant; although it wasn't previously identified as one threatened by a parts shortage. The more likely scenario: Chevy's filled all its Impala fleet orders. With overall sales down 11.1 percent for the year, and the distinct possibility that Malibu sales are (as predicted) cannibalizing the Impala, GM's simply slowing Impala production to meet retail demand (or lack thereof). The sales numbers over the next few months will throw some light on the truth of the matter. We'll keep you posted.

If the United Auto Workers (UAW) are expecting General Moneybags to "solve" the UAW strike using the Delphi solution (buyouts for everyone and your checks for free), they may be waiting a long time. Automotive News [sub] reports that the expected shutdown of the Malibu/G6 plant– due to lack of an AA-supplied part– ain'tgonnahappen.com. When asked when GM would run out of the part, supply guru Bo Andersson answered, "Based on the way I see it now, never." Bo added that his employer has "a good plan for handling the potential shortage" after they use up the supply of parts they "found " earlier this month. When asked if GM was receiving parts from another manufacturer, he declined to answer. But, Bo added, "What we learn every day is to have alternatives. It is my job to make sure we have alternatives for everything we buy." The most probable explanation: American Axle's Mexican operations are suppling the necessary bits. Alternative theory: China. Think about that the next time you equate "buying American" and "buying domestic."

In less than a week, GM will run out of the parts it "found" to keep the Malibu production line running. At that point, they're left with a dilemma: either shut down production on one of their better-selling vehicles or get involved in the UAW/American Axle strike negotiations. After sinking more than $7.5b into Delphi to help them settle a strike and restructure (they have a few billion more to pay to bail Delphi out of Chapter 11), The General may be reluctant to get involved with another supplier. On the other hand, they can't keep closing factories– now that the closures are expanding past slow-selling trucks. If GM decides to intervene, it could offer to "buy down" AA workers with one-time bonuses from their seemingly bottomless cash stash. Or, they could offer to let AA workers transfer to GM where they'd retain their union seniority and pay, so AA could hire new, lower-paid workers. Anyway GM looks at this, they lose.

American Axle (AA) and the United Auto Workers (UAW) are back at the negotiating table. But they're still a long way from an agreement. After Monday's meeting between UAW president Ron Gettelfinger and American Axle CEO Dick Dauch, a quick resolution of their differences seemed promising. However, the Munster, Indiana Times reports AA's negotiators called a proposal from the UAW a "slight improvement" that wasn't anywhere near the concessions the company seeks. In a news release, AA ratched-up the rhetoric. If the UAW wasn't willing to "make realistic economic proposals" (i.e. accept a 50 percent pay cut), AA'd "be forced to consider closing these facilities." Dauch's counter-offer: "generous buyouts" to those union members who don't want to work for half of what they made before the strike. The UAW hasn't responded to AAM's statement. Radical union factions are warning members about "the treachery of the UAW bureaucracy." They claim the UAW "is planning another agreement modeled after the concessions contracts it has agreed to again and again throughout the industry." AA and its customers certainly hope so.

The Detroit News reports that GM has reached an agreement with UAW workers in Parma, OH over  new, union-negotiated, two-tier wage structure. The sticking point: the definition of "core" (higher tier) and "non-core" (lower tier) jobs. While the accord still needs final approval from the United Auto Workers' (UAW) 1600 local members, its ends the threat of a strike at the plant which makes Cobalt components. That leaves four more union locals still threatening to walk over job designations. GM is negotiating with the remaining discontented union locals, which are nearing the end of their five-day strike warnings. Look for GM to try to put out these remaining fires as the week winds to a close; the ongoing American Axle strike has left the General highly vulnerable to any supply shocks.

Well, that's what happens when your employer pays you 80 cents on the dollar for your health care, and says here, you guys sort it out. The Detroit News reports that U.S. District Court Judge Robert Cleland considers Chrysler's $10.3b health care compact with its United Auto Workers (UAW) members "fair and reasonable." Under the terms of the agreement (a.k.a. health care VEBA), 170k active Chrysler workers, retirees, spouses and dependents will face new charges for their doctors' visits. In the short term, Chrysler retirees will now pay an $11 monthly premium and a $159 annual deductible. After that, a new 11-member supervisory board (six court appointees, five union reps) will ensure that the fund makes up the $8b shortfall AND makes enough money to cover soaring health care cost inflation, WITHOUT raising deductibles or further limiting patient choice OR allowing union members to plunder the fund OR letting cronies (lawyers, hospitals, etc.) get sweetheart deals OR waste precious VEBA funds. Meanwhile, Chrysler's lawyer says the VEBA's a good deal because her employer might go out of business. "We do believe in the light of the uncertain environment that Chrysler is operating that this settlement is the best for all parties," Nancy Ross pronounced. Ready for that summer vacation yet Nance?

The American Axle strike got confrontational today, as UAW workers picketed an AA replacement-hire orientation in Kalamazoo. MLive.com reports that some 20 striking workers picketed a hotel where testing sessions were taking place, shouting "Unfair Labor Practices!" and other niceties at potential scabs. The company says that they're creating an applicant pool in preparation for forthcoming buyout offers, but spokesfolks won't deny that the new workers could replace strikers. "(AA) seem to be more concerned with pushing through new workers," said Kevin Bushouse, an executive board member of the Three Rivers local union. "We'd rather see them negotiate with us, settle with us." AA has received "thousands of applications" since it advertised for replacement labor, and will continue holding testing until Friday. Meanwhile, a UAW "informational picket" will continue in Detroit where UAW-AA talks are said to be improving.

Buried in a Detroit News story about further disruption at GM– courtesy of the United Auto Workers (UAW) strike at American Axle (AA)– we learn GM has "found" enough parts to restart production in Oshawa, Ontario and Fort Wayne, Ind. (Chevrolet Silverado and GMC Sierra pickups). This after GM announced that they'd "found" enough Malibu parts to hold-off a shutdown for an "extra week." Turns out the fortuitous happenstance comes courtesy of American Axle's Mexican ops. "[GM Spokesman Dan] Flores wouldn't specify where the parts are coming from, though several analysts have said GM is likely using parts from an American Axle plant in Mexico. The move is evidence American Axle's ability to get parts from Mexico gives it leverage in the dispute with the UAW, said labor expert Harley Shaiken of the University of California Berkley [sic]." So… why aren't the United Auto Workers bosses screaming bloody murder and threatening to strike GM in support of their members at AA? Maybe it's because The Star-Telegram reports "GM leaders have decided to divert the Arlington plant's supply of truck axles to other plants in order to augment production of pickups affected by the ongoing UAW strike against American Axle." We report, we're confused.