US automakers General Motors Corp. and Chrysler LLC were forced to halt production at five assembly plants Friday due to strikes at two key suppliers.
Four truck plants which build two of GM's best-selling vehicles have already been hit by the strike which began Tuesday at GM's former subsidiary, American Axle and Manufacturing Inc.
More plants could close next week if the strike is not resolved, sources said.
Chrysler, which also buys truck parts from American Axle, has so far been unaffected by that strike.
But it was forced to idle a minivan plant in Windsor, Canada Friday afternoon, just hours after a strike began at TRW Automotive, which supplies suspension frames.
GM purchases more than 70 percent of the parts made by American Axle, which turns out heavy axles, drivetrain and chassis systems and related components for light trucks, sports utility vehicles and crossover vehicles.
Its Pontiac, Michigan truck plant was idled on Thursday and plants in Oshawa, Canada; Flint, Michigan and Fort Wayne, Indiana will close when the second shift ends on Friday evening, GM said.
“Right now the employees are being told there are no parts so don't show up on Monday,” GM spokesman Tom Wickham told AFP.
GM would not disclose how many other plants are supplied by its former subsidiary American Axle and Manufacturing Inc. which is one of GM's principal suppliers.
“At this point we're monitoring the situation as it relates to any other facilities which use parts from American Axle,” Wickham said.
“We're hoping for a quick resolution so we can get these plants up and running.”
Some analysts have suggested that GM would not be badly damaged by an extended strike since the Detroit-based automaker has a large inventory of unsold trucks sitting on dealer lots.
Wickham would not comment on the impact of a lengthy strike, but said “dealers have product out there to sell.”
“Once the dispute ends, we'll work with our supplier to ensure the parts are delivered in a timely fashion,” he added.
GM has tried to keep a tight control of inventories but the company may be sitting on a 150-day supply of pickup trucks, analysts estimate.
Sales of pick-up trucks in the United States have dropped, along with a sharp decline in housing starts and an overall weakening of the economy.
Edmunds.com, which tracks auto sales data, predicted GM will sell 280,000 units in February 2008, down 9.5 percent compared to February 2007 and up 11.3 percent from January 2008.
GM's overall market share is expected to be 22.9 percent of new vehicle sales in February 2008, down from 24.7 percent in February 2007 and down from 24.1 percent in January 2008.
