GM’s $200 Million Aid to American Axle was a Practical Decision-Troy Clarke
According to a top GM Executive, while considering a myriad of options in a bid to help American Axle break out of the UAW strike deadlock, the GM management’s decision to provide an aid of $200 million was the best option of all.
Troy Clark (President, GM North America) in a statement said, “There were a number of us involved in it and in the discussions, and collectively we evaluated several options. There were several levels of engagement and we thought that this would be the right thing to do and the right time to do it. We thought it was in our best interests and the best interest of all parties to do something positive and helpful in trying to encourage the parties to reach a resolution.”
The strike at American Axle plants had partially or completely idled 31 GM production and assembly plants across the United States. At first GM had stated that it would not be a party to the negotiations between American Axle and UAW, but later it decided to offer the $200 million aid to American Axle. The strike which had entered its 10th week with over 3,650 workers as willing participants, had the GM top brass deeply worried and thus General Motors decided to change their stance on the situation. This financial help has been provided in an effort to enable American Axle to carry out its buydown offers and buy-outs for the returning workers.
According to Mr. Clarke, the UAW strike at American Axle had cost GM $800 million in loses in the very first month. Although GM has no legal obligations or any responsibilities towards American Axle workers, still the management deemed the aid offered to the strike riddled company as both practical and ethical.
Adding to his previous statement Troy Clarke added, “Did we have a high truck inventory? Yes, that’s a true statement. Did it bleed off some of that inventory that we may have had to bleed off otherwise? I think that’s a fair statement, too. But I don’t think it’s the kind of thing where we were on the sideline. Wow, I hope the strike lasts another two weeks because it gets me down to my inventory number.”
On the issue of the UAW strike at various General Motor plants, Troy Clarke stated, “Labor issues are complex and very tough to talk about these kinds of things in the press,” he said. “I do know one thing: The strike will eventually end.”
