Autoworkers strike forces GM vendors to start layoffs
GM strikes stretch into a fourth day
FOX Business' Grady Trimble reports on the latest developments in the UAW strike.
Fallout from the United Auto Workers strike at GM isn't limited to the carmaker and its employees.
The disruption on assembly lines has created a supply-chain backlog, forcing vendors to lay off their own laborers as work dries up, according to The Detroit Free Press. Local GM plants are not accepting deliveries due to the strike, a spokesperson told The Detroit Free Press.
While General Motors told Fox Business that "negotiations have resumed, and there has been progress," the industry surrounding the automaker is still feeling the effects.
Just this week, multiple suppliers providing parts from brakes to seats and fuel components have seen their shares dip more than 2 percent with powertrain systems provider Delphi Technologies and American Axle & Manufacturing, a key maker of steering and suspension systems, leading with double-digit losses.
Other notable suppliers who took a hit this week include Modine Manufacturing, which produces radiators; Cooper-Standard Holdings, which makes hoses for brake lines, rubber and plastic sealings, and BorgWarner, which builds exhaust and emission controls.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DLPH | n.a. | n.a. | n.a. | n.a. |
| AXL | AMERICAN AXLE & MANUFACTURING HOLDINGS INC. | 7.55 | +0.07 | +0.87% |
| MOD | MODINE MANUFACTURING | 91.00 | +1.98 | +2.22% |
General Motors has already offered 5,400 jobs and an investment of $7 billion in an attempt to end the strike.
More than 49,000 members of the United Auto Workers have been striking since Monday, seeking a contract with better wages, improved health-care coverage and job security.
CLICK HERE TO READ MORE ON FOX BUSINESS
The strike has slowed more than 50 factories and parts warehouses to a standstill in the union’s first walkout against the No. 1 U.S. automaker in more than a decade.
On the picket lines, many workers were hoping for a quick resolution, but said they’re willing to stay out as long as needed.
FOX Business' Charles Brady and The Associated Press contributed to this report.