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

Alpine is said to be developing an SUV which is believed to be the Porsche Macan’s closest rival. According to AutoExpress, the newly revived performance brand has been looking to...
by - July 20, 2017
Two years ago, there was a patent filed by Honda Motors under the name “baby NSX”. It then had a angular sports car design that is clearly mid-engine, and had...
by - July 20, 2017
The long awaited 2018 Buick Regal GS has finally been revealed by the company, following several leaked photos and information in the past few months. The thing is, if you’ve...
by - July 20, 2017
Earlier this month, we learned that France has made moves to ban diesel and gasoline fueled cars by stopping them from entering the city. More than that, they plan to...
by - July 19, 2017
The new 2018 Rolls-Royce Phantom VIII is on the way, but still, all we had been seeing are camouflaged prototypes of the eight generation of this iconic nameplate. Fortunately though,...
by - July 19, 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