Axle strike could limit supply of hot-selling Chevy Malibu
Sharon Terlep / The Detroit News
The strike at parts maker American Axle could threaten production of General Motors Corp.'s hot-selling Chevrolet Malibu, sources familiar with production of the vehicle said today.
The recently launched Malibu is a critical product for GM and already is in short supply. Until now the only GM factories affected by the United Auto Workers work stoppage have been ones that produce slow selling large trucks and full-size sedans.
American Axle doesn't directly supply components for the Malibu, but the parts maker does sell to major suppliers that in turn provide parts for the car, the sources said. The Malibu is produced at GM Fairfax plant in Kansas City, Kansas and its factory in Orion.
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The strike, under way for five weeks, has forced GM to stop or slow production of 30 factories. Most those plants build fill-size pickup trucks and SUVs, of which GM has several months' worth of inventory.
The Malibu is a much different story. As of last week, Malibus were sitting on dealer lots an average of only 18 days, according to data from J.D. Power and Associates.
"GM does stand to lose quite a bit if they find themselves running short," said Jim Gillette, director of supplier analysis for CSM Worldwide. "It's a serious situation. The part that they're supplying isn't that significant, but you can't put a car together unless you have all the parts."
Sharon Terlep / The Detroit News
The strike at parts maker American Axle could threaten production of General Motors Corp.'s hot-selling Chevrolet Malibu, sources familiar with production of the vehicle said today.
The recently launched Malibu is a critical product for GM and already is in short supply. Until now the only GM factories affected by the United Auto Workers work stoppage have been ones that produce slow selling large trucks and full-size sedans.
American Axle doesn't directly supply components for the Malibu, but the parts maker does sell to major suppliers that in turn provide parts for the car, the sources said. The Malibu is produced at GM Fairfax plant in Kansas City, Kansas and its factory in Orion.
Advertisement
The strike, under way for five weeks, has forced GM to stop or slow production of 30 factories. Most those plants build fill-size pickup trucks and SUVs, of which GM has several months' worth of inventory.
The Malibu is a much different story. As of last week, Malibus were sitting on dealer lots an average of only 18 days, according to data from J.D. Power and Associates.
"GM does stand to lose quite a bit if they find themselves running short," said Jim Gillette, director of supplier analysis for CSM Worldwide. "It's a serious situation. The part that they're supplying isn't that significant, but you can't put a car together unless you have all the parts."
