General Motors, United Auto Workers

General Motors, United Auto Workers

Auto suppliers hit as General Motors strike in U.S. grinds on

The General Motors strike is also affecting companies that supply parts, computer systems, and raw materials to GM


The General Motors strike is also affecting companies that supply parts, computer systems, and raw materials to GM.

The General Motors strike is also affecting companies that supply parts, computer systems, and raw materials to GM

NEW YORK, USA – As the General Motors (GM) strike grinds on, more auto suppliers and contractors are sending workers home, adding to the economic drag on Michigan and other United States midwestern car manufacturing hubs.

"The hit to the economy is already huge," said Gruener, a die maker, who said support from local community groups and charities was helping people get through.

"What started as a concentrated event affecting a select group of workers has now ballooned in scope," said Brian Peterson, director of public policy and economic analysis at Anderson Economic Group, a research consultancy.

Leading supply companies also have significant operations in other states in the industrial Midwest, including Ohio, Indiana, and Illinois. The region contains a number of swing states expected to be critical in the 2020 US presidential election.

"The economic impact is starting to be noticeable," Traub told AFP, adding that the loss of some $2 billion in output will have an incremental impact on gross domestic product estimates.

"We remain encouraged that both sides are continuing to work towards an agreement," said a Magna spokesman.

Other companies expected to see a big hit include American Axle & Manufacturing, which relied on GM last year for 41% of company revenues, and Lear, which garnered 18% of its revenues from GM.

American Axle did not respond to requests for comment.

Read more: Rappler

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10 October 2019, Thursday News

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