GM Plant Strike Ends After Six-Week Stalemate and Production Resumes

After six weeks of stalemate, production resumed at the GM plants- bringing relief to the troubled automaker. The United Auto Workers’ national level strike against the iconic Detroit automaker came to an end, and 55 GM Plants returned to normalcy. Dan Flores, a GM spokesman, said the company is focusing on returning to usual production schedules as soon as possible. After the UAW members gave the nod to a new contract valid for four years, GM went back on track, and production resumed in some plants on Saturday itself. These include the plants at Fort Wayne and Flint.

The industry experts think GM’s production will reach full capacity by a week. However, there can be a few bumps in the way. The company does not want to lose money, and neither do the staff working in its plants. The non-UAW GM facilities located in Ohio, Canada, and Mexico also restarted production. The company is focusing on ramping up production at the truck plants in Arlington, Fort Wayne, and Flint as they are deemed the most profitable now. GM also needs to ramp up production to cater to the dealers in dire need of inventory. Fortunately, for GM, the inventory during the strike was a healthy one, with approximately 81 days’ supply of SUVs, cars, trucks in place.

The focus is also on resuming production at facilities for car parts manufacturing. During the strike, Lear Corp shut four plants in Wentzville, Flint, Arlington, and Fort Wayne. These plants are used to manufacture seats for the adjacent GM facilities. Production at these setups have resumed, said the company sources. Ray Scott, the Lear Corp. CEO said earlier that the Southfield Company making seating and electrical systems lost almost $525 million in revenue owing to the six-week strike. The strike also impacted some other car part manufacturers adversely. One of them is Nexteer Automotive, an Auburn Hills-based steering and driveline products supplier. It had to reduce the workforce on an interim basis for the cease work at GM plants.

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Doris Maguire

I'm a personal finance and business regarding writer on LIVINGWITHED. I studied Social Anthropology at the London School of Economics, where I was a writer and editor for one of the university’s global affairs magazines, the London Globalist. I am particularly interested in cross-border investments, partnerships, transformations, new revenue growth, and start-ups.

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