American Axle to close its plant in New York

Article by Christian A., on August 30, 2011

American Axle & Manufacturing Holdings Inc. announced that the Cheektowaga, N.Y. plant will be closed just one day after the union rejected the contract offer. Two months ago, American Axle, a former General Motors Co. unit, revealed that its Detroit manufacturing complex will be closed as it had failed to reach a labor deal with the UAW. The New York plant has 66 employees that the UAW represents and as many as 34 salaried workers.

The UAW said that talks broke down as the workers turned down the offer of American Axle. In a statement to Crain's Detroit Business, Chris Son, director of corporate and investor relations, said that the customer production volumes for the programs at this facility were “significantly reduced” by the shifts in market demand toward more fuel-efficient passenger cars and crossover vehicles.

He added that several customer assembly plants that the Cheektowaga manufacturing facility supported have been shut down.

As a result, American Axle is required to consolidate, rationalize and reposition production capacity in order to adjust to the new, lower market requirements for its North American products.

Last June, Son informed Crain’s that American Axle persisted in seeking a competitive labor contract with the UAW that would be similar to the contract reached at its Three Rivers plant located in southwest Michigan.

Axle aimed to lower compensation to $30 an hour from $45 at its Detroit plant, which is probably what the supplier wanted for New York. Son explained that Axle sought to be market-competitive and to attain a suitable cost structure.

Topics: american axle

If you liked the article, share on:

Comments

Recommended

One of the executives at Volkswagen tagged in the so-called Dieselgate scandal has pleaded not guilty to a list of allegations surrounding the carmaker’s actions to cheat emissions regulations in...
by - February 27, 2017
When the Crown De Luxe saloon was first released in 1972, it was at that time the most lavish Toyota model available to British customers. Both unusual and exclusive, one...
by - February 27, 2017
The ride-sharing fleet of sharing Lyft Inc. will soon include thousands of specially fitted self-driving Chevrolet Bolt electric vehicles, courtesy of General Motors. If plans push through, Lyft’s clients would...
by - February 27, 2017
J.D. Power has officially released the 2017 Vehicle Dependability Study, an annual list of the most dependable brands in the auto industry. Once again coming on top is Lexus, the...
by - February 26, 2017
Citroen revealed that its entry to the Chinese market is moving forward with the planned release of the new generation C5. While still on sale on this part of the...
by - February 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries