GM Has Two Weeks Before A Strike Could Hit Silverado And Sierra Production

The Workforce

Automotive production has largely become automated in the past few years; this has streamlined processes and efficiency across plants all over the world. However, some things still require a human touch; thus, in the U.S., the human workforce remains a vital group for carmakers in production.

Keeping the workforce happy is essential, as it ensures production lines run smoothly and on schedule; after all, any delay could disrupt car supply, which no brand wants. GM is under the spotlight now, as some of its workers have gone on strike, which could impact the supply of very key models.

UAW Dauch Corp Walkout

Reuters is reporting that workers at the Dauch Corp (formerly American Axle) have gone on strike. According to the United Auto Workers group, the walkout was set to begin this past Monday. Dauch Corp is responsible for the production of axles and other driveline parts that are essential to the production of GM’s truck lineup, which, as we know, are some of the most popular and best-selling models in the brand’s lineup.

According to the report, GM has about two weeks of axle inventory to keep building trucks unhampered; this was confirmed by two people familiar with the matter to Reuters. GM is said to be monitoring the situation closely and assessing any potential impact, while Dauch Corp called the work stoppage a disappointment.

The spokesperson went on to say, “We remain committed to negotiating with the ​union in good faith and hope to promptly reach a fair agreement.” As a result of the strike, GM’s shares dropped by 2% after trading; Dauch took a bigger hit, losing 6%. The Chevrolet Silverado and GMC Sierra models are built in the U.S., Canada, and Mexico, and make up one-third of the GM group’s sales, giving more importance to this work stoppage and its effect on the overall business.

Wage Hike

The United Auto Workers is seeking a wage increase for workers, who the group claims kept the factory alive during the 2008 financial crisis through “sacrifices”. According to the union group, top wage earners make $22 an hour, down from the $29 an hour high in 2008.