GM Thai factory strike resulted in US axle loss of US $15 million
According to American Automobile News, GM's spare parts supplier, American Bridge Manufacturing Company, was also affected by a strike at its Thai plant, which could cost GM $15 million in production cuts.
U.S. axles are used to produce intermediate trucks by supplying front, rear axles and drive axles to GM's local factories through a factory in Rayong, Thailand. The company is expected to suffer $15 million in losses in the first quarter of this year as a result of the strike at GM's Royongfu plant, Carbridge said in a document.
On February 8th, about 2,000 workers at the General Motors Royongfu factory went on strike because the factory added a new round of shifts on Saturday, but did not provide overtime wages for its employees. According to Thai local media on March 14, 3,000 GM workers remained on the production line, but the plant's daily production of cars fell from 600 to 100.
Laurent Berthet, director of GM's Southeast Asian media, said the factory had been closed for three days because of the strike. At present, the "vast majority" of its employees have returned to the factory. The factory is operating in two shifts. Now only an unknown number of employees are on strike, but this has not affected production.