GM offers $200M to settle Axle strike
The automaker has budgeted for worker payments, employee buyouts and retirement packages to help end the crippling strike at the parts supplier.
DETROIT (AP) -- General Motors Corp. has agreed to kick in up to $200 million to help bring an end to a bitter 10-week strike at parts supplier American Axle and Manufacturing Holdings Inc.
The automaker said Thursday in a government filing that the money would go for temporary payments to buffer reduced wages for the workers, as well as employee buyouts and early retirement packages.
About 3,600 United Auto Workers (UAW) union members at 5 American Axle factories have been on strike since Feb. 26 in a dispute over the company's quest for lower wages and benefits.
The strike has crippled GM's production of pickup trucks and sport utility vehicles, hurting its bottom line. About 30 GM factories have been either fully or partially closed due to the strike.
No deal yet: No deal had been reached between American Axle and the UAW as of Thursday afternoon, but American Axle spokeswoman Renee Rogers said talks were continuing.
"We are hopeful that GM's financial assistance to help fund the buyouts, retirement incentives and buy downs ... will facilitate an expedited resolution to the international UAW strike," Rogers said. "It's been costly and disruptive. A quick return to work will be a win-win-win for everybody."
American Axle said in a separate filing with the Securities and Exchange Commission that the aid from GM is contingent on a quick end to the strike.
"We believe the offer will help bridge the gap between American Axle and the UAW, and that they will be able to reach a mutually satisfactory agreement in the near future," GM spokesman Dan Flores said.
A phone message seeking comment was left for UAW spokesman Roger Kerson.
American Axle (AXL) makes axles, drive shafts and stabilizer bars mainly for GM's (GM, Fortune 500) large SUVs and pickup trucks.
Running on inventory: GM said in its filing that the strike has not hurt its ability to deliver trucks and SUVs because its dealers had large inventories of the vehicles. However, the strike cost GM's North American division $800 million because the company lost production of about 100,000 vehicles.
"We anticipate that this lost production will not be fully recovered after this work stoppage is resolved, due to the current economic environment in the United States and to the market shift away from the types of vehicles that have been most strongly affected by the action at American Axle," the company said.
GM also said the strike has cut its liquidity by $2.1 billion, but said it has the money to meet its needs even if U.S. industrywide auto sales continue to drop. 
