Edmunds Inside Line reports, "General Motors should be back in business soon, producing the hot-selling Buick Enclave, GMC Acadia and Saturn Outlook crossovers, as well as launching the promising Chevrolet Traverse now that it has settled a strike with workers who build the popular crossovers." The General reached an agreement with union workers at a Michigan plant early Thursday morning. Production has not yet resumed. "Officially workers will remain on strike until they ratify the contract; it was unclear Thursday morning when that vote might be taken."
The agreement ends just one of several strikes GM, and its parts supplier American Axle, have been dealing with. The strikes have slowed or halted production of everything from the popular Chevy Malibu to the slower-selling GMC Sierra. Michigan's Flint Journal reports, "Some dealers are reporting decreased inventory, and at least some customers may find difficulty buying the exact vehicle -- with their specific bells and whistles -- they are looking for." GM insists the impact on customers has been minimal, but Matt Stevens, new car sales manager for Vic Canever Chevrolet in Fenton, told the Journal, "We're short on Cobalts, Malibus, Impalas…It's just hard getting a selection of cars because of the demand and the strike."
The strikes appear to be having a broader economic impact as well. "The Federal Reserve said on Thursday that U.S. industrial output fell by 0.7 percent in April, more than double the 0.3 percent decrease economists were expecting, as manufacturing activity slid 0.8 percent," according to Reuters. "The drop in factory output reflected the biggest decrease in auto production in nearly a decade." In its report, the Federal Reserve "pointed to the work stoppage at American Axle, which has led General Motors Corp to shutter much of its North American production of trucks and large SUVs, as a factor behind the big factory slump."
GM has offered $200 million to help American Axle settle the strikes. Negotiations are ongoing at other factories, and we'll bring you updates as we have them.
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