GM to take a $1.8 billion hit in Q2, thanks to UAW going on strike against American Axle

[Toyota.vs.GM]

The final UAW local union ratified a new labor agreement with American Axle on May,22,2008 ending a work stoppage that affected appoximately 30 GM plants in North America.

As previously disclosed , the work stoppage at American Axle resulted in a loss of appoximately 100,000 production units in the first quarter of 2008 , which had estimated impact on earnings before tax of appoximately $0.8 billion.

In the second quarter , the American Axle strike is expected to result in the loss of an additional 230,000 production units , which is estimated to have an earnings before tax impact of approximately $1.8 billion.The whole filing here

[VenSeattle]

Well, we know part of the reason Toyota brand has outsold Chevrolet for the year so far.

[CARBIZ]

Just think of what this money could have done for a Cobalt replacement, or a RWD Impala, or Volt, or....................

[toesuf94]

Is American Axel the only company that can supply the needed parts or are others being ramped up to produce the parts?

I am sure if a supply of parts is brought in that somebody can be found to build the damned cars without the Union team that is striking.

[VenSeattle]

Is American Axel the only company that can supply the needed parts or are others being ramped up to produce the parts?

I am sure if a supply of parts is brought in that somebody can be found to build the damned cars without the Union team that is striking.

Heh... GM attempted to circumvent the UAW/American Axle strike by contacting vendors/suppliers used to manufacture the Malibu in Asia... what happened? UAW went on strike at the Malibu plant.

GM can't win.

[daves87rs]

Heh... GM attempted to circumvent the UAW/American Axle strike by contacting vendors/suppliers used to manufacture the Malibu in Asia... what happened? UAW went on strike at the Malibu plant.

GM can't win.

I thnk many of the suppliers contracts are coming up soon....

[longtooth]

Who killed the electric car? They'd be well ahead of Toyota if they'd merely pulled the EV-1 off of the market and allowed it to gestate further. Squandered opportunities.

[VenSeattle]

Who killed the electric car? They'd be well ahead of Toyota if they'd merely pulled the EV-1 off of the market and allowed it to gestate further. Squandered opportunities.

What does that have anything to do with this topic?

[longtooth]

What does that have anything to do with this topic?

As valid as any anti-union (or pro) comment here. Where would GM be now if they allowed the EV-1 to EV-olve?

[Intrepidation]

As valid as any anti-union (or pro) comment here. Where would GM be now if they allowed the EV-1 to EV-olve?

It's not valid because it has nothing to do with this thread. It belongs in it's own thread, not a thread about a strike costing GM money because it didn't have the vehicles to sell due to lack of units.

[Blake Noble]

Who killed the electric car? They'd be well ahead of Toyota if they'd merely pulled the EV-1 off of the market and allowed it to gestate further. Squandered opportunities.

Why did PCS appoint you as his successor? You are not filling his shoes well, sir. I hear the newspaper you are using to fill in the spaces crinkle as you walk.

[longtooth]

Why did PCS appoint you as his successor? You are not filling his shoes well, sir. I hear the newspaper you are using to fill in the spaces crinkle as you walk.

Nice Solstice H/T. It'd horrify you to know I see those every day.

Not as though business is booming on this site.

[GXT]

Huh... why did GM just announce they are cutting truck production by 138,000 units is they are hurting for units to sell?

I had assumed that the strike was a convenient way to cut inventory while not appearing to have to do so.

So the question is, is this a $1.8 Billion loss due to the strike, or is the strike a convenient way to pretend that GM's sales wouldn't have tanked $1.8 Billion anyways due to trucks no one wants?

[Blake Noble]

Nice Solstice H/T. It'd horrify you to know I see those every day.

Now why would that horrify me, sir?

Not as though business is booming on this site.

We have a thread for this now:

http://www.cheersandgears.com/forums/index...showtopic=23819

[longtooth]

Now why would that horrify me, sir?

We have a thread for this now:

http://www.cheersandgears.com/forums/index...showtopic=23819

Thanks for the heads-up.

The thought of old 'crinklefoot' building 'em sits right with you? re: the solstice h/t. very nice car by the way. a booming niche filler.

[Blake Noble]

Thanks for the heads-up.

No problem.

The thought of old 'crinklefoot' building 'em sits right with you? re: the solstice h/t. very nice car by the way. a booming niche filler.

You aren't PCS, so you are nothing to seriously worry about. Not meaning to be rude or anything, mind you.

[longtooth]

No problem.

You aren't PCS, so you are nothing to seriously worry about. Not meaning to be rude or anything, mind you.

Not a problem. Just typically 'age-addled' is all.

[FUTURE_OF_GM]

Who killed the electric car? They'd be well ahead of Toyota if they'd merely pulled the EV-1 off of the market and allowed it to gestate further. Squandered opportunities.

Yeah f*ckin' right...

[FUTURE_OF_GM]

As valid as any anti-union (or pro) comment here. Where would GM be now if they allowed the EV-1 to EV-olve?

Bankrupt.

GM just needs to break the union and get it over with.

Times are tough right now and I bet GM could EASILY find people to work in their factories for a fraction of what the union wants. Just do it GM. File bankruptcy if you will and kill the cow that the parasites live on.

Edited May 27, 2008 by FUTURE_OF_GM