American Axle Costs GM $2.6 Billion…Ouch!

General Motors lost a heap of money when American Axle (AA), the chief supplier of transmissions for the popular Chevrolet Malibu and other Chevrolet Malibumodels, went on strike earlier this year. The action of AA caused GM to idle or reduce production at as many as 30 plants at some point during the duration of the three-month long strike.

Bloomberg has reported that the strike cost GM $2.6 billion as well as lost production amounting to 330,000 units. Though the strike ended on May 26th, it wasn’t until June 16th when full production was restored when the last of five engine plants came back online.

Though production has resumed across GM’s network of manufacturing plants, some of the output has been diminished as the automaker compensates for weakened demand for larger trucks and SUVs.

Last month, GM saw a month-long strike end at its Lansing Township (MI) factory, which builds its popular crossovers including the Buick Enclave, GMC Acadia, and Saturn Outlook. In addition, a plant in Kansas which builds the Chevrolet Malibu ended their two-week strike in May as well.

The combined strikes and lowered demand for its vehicles pushed GM’s U.S. market share below 20% for the first time.

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