Parts Strike 'Not a Huge Issue' for GM, CEO Says

WASHINGTON — An auto parts supplier's strike is "not a huge issue for us," despite having triggered shutdowns at many General Motors Corp. plants, GM chief executive Richard Wagoner said Tuesday.

Wagoner, speaking with reporters at a breakfast, said GM dealers have enough vehicles on their lots to continue making sales in a slowing market.

"We are losing some production for sure, but at least at this point, the impact on our retail sales has been negligible because of the (large) inventories and the rather weak market that we're in," he said.

GM has said its supply of pickup trucks is adequate for 60 to 90 days. While strike-related costs may reduce GM's first-quarter earnings, "as far as the business goes, it has not really affected us a lot," Wagoner said.

The strike began Feb. 26 at American Axle & Manufacturing Holdings Inc., a Detroit-based auto parts manufacturer created in 1994 from plants sold off by GM.

Wagoner predicted the strike "shouldn't go on for a very long period of time." After it does end, the affected GM plants would reopen within "a matter of days," he added.

The axle strike has hampered GM's ability to make pickup trucks, large sport utility vehicles and vans. That has led to the suspension of production in part or all of 29 GM plants, affecting more than 37,000 hourly workers.

For example, last week, GM shut down its assembly plant in Moraine, Ohio, where 2,170 hourly workers make the Chevrolet TrailBlazer and GMC Envoy.

American Axle wants the United Auto Workers to give it concessions similar to those workers gave to GM, Ford Motor Co., Chrysler LLC, and parts makers Delphi Corp. and Dana Corp.

United Auto Workers President Ron Gettelfinger, speaking on WJR-AM radio in Detroit on Tuesday, said the two sides are not making progress in negotiations.

Some labor experts have said the walkout could drag on because the strikers know American Axle is profitable, making $37 million last year on sales of $3.25 billion. The other auto-related companies that won wage and benefit concessions were either losing money or already bankrupt.

In other comments at the breakfast hosted by the Christian Science Monitor, Wagoner addressed the recent statement made by GM Vice Chairman Bob Lutz on the subject of global warming. Speaking with reporters, Lutz declared that such warming is "a crock of s—-."

The Lutz remarks "weren't coming out of the company," Wagoner said. Indeed, GM is investing "a huge amount of money" in alternative fuel technologies, he said.