UAW launches strike at auto supplier Nexteer's U.S. operations (updated)

Nexteer Automotive

08/12/2015 18:16

(Updates with GM, Ford and Fiat Chrysler comments) 
    By Joseph White 
    DETROIT, Dec 8 (Reuters) - Union workers at Nexteer 
Automotive Group Ltd's  1316.HK  plant in Saginaw, Michigan, 
walked off the job early Tuesday after rejecting a proposed 
contract, halting production of steering systems and other 
components essential to vehicle production by General Motors Co 
 GM.N  and other automakers.  
    United Auto Workers union Local 699 announced the strike on 
its Facebook page shortly after midnight on Tuesday. The action 
came after workers at the Saginaw factory on Sunday voted down a 
proposed contract by a wide margin. Local 699 leaders posted a 
tally sheet of the vote on Facebook. 
    GM and Fiat Chrysler Automobiles NV  FCHA.MI   FCAU.N  said 
in statements Tuesday they are monitoring the situation at 
Nexteer. GM said its production had not been disrupted "at this 
point." FCA said Nexteer supplies parts to several of its North 
American factories. 
    Ford Motor Co  F.N   said in a statement that Nexteer's 
Saginaw facility "does not directly support any Ford operations 
in North America," and that Ford is looking into any potential 
impact through its supply chain.  
    Nexteer, controlled by a unit of Aviation Industry Corp of 
China, was formerly part of GM, and remains a major supplier of 
steering systems and related hardware to the Detroit automaker. 
Nexteer supplies steering systems for GM's profitable large 
Chevrolet Silverado and GMC Sierra pickup trucks. 
    "We are trying to resolve this as quickly as possible," 
Nexteer spokesman Luis Canales said in an interview on Tuesday. 
    A spokesman for UAW leadership in Detroit did not have an 
immediate comment. Officials at Local 699 could not be reached. 
     
 
 (Editing by Jonathan Oatis, Diane Craft) 
 ((Joe.White@thomsonreuters.com;)) 
 
Keywords: AUTOS UAW/NEXTEER