To The Moon

The American Axle & Manufacturing plant in Michigan produces critical components for the Chevrolet Silverado and GMC Sierra pickups.

Workers at a Michigan auto parts supplier are set to strike, halting production of essential parts for General Motors' medium and heavy-duty trucks.

Nearly 1,000 workers at the American Axle plant in Three Rivers, Michigan, are planning to walk out after contract talks reached an impasse. Employees state they agreed to halve their wages in 2008 during tough economic times to save the plant. Now, with strong GM truck sales generating significant profits for American Axle, workers' pay has not been restored to previous levels.

United Auto Workers President Shawn Fain announced the strike decision in a live broadcast Sunday night, stating workers have been unfairly treated for 18 years despite creating huge profits, accepting pay cuts, and reduced benefits. The strike began at 12:01 a.m. Monday.

Fain added that the strike will continue until the company addresses the issues and gives workers the dignity and respect they deserve.

American Axle has not commented. A General Motors spokesperson said the company is closely monitoring the situation with this supplier and is assessing potential impacts while staying in communication with internal teams.

The plant primarily manufactures axles for GM's heavy-duty Chevrolet Silverado and GMC Sierra pickups, as well as for the medium-duty Chevrolet Colorado and GMC Canyon. It also supplies axle tubes for the light-duty Silverado and Sierra.

In addition to GM, its main customer, the factory also produces parts for other auto suppliers and for the Chrysler Pacifica minivan.

The timing of this strike is particularly challenging for General Motors. Rival Ford is currently facing production constraints on its trucks due to an aluminum shortage, an opportunity GM hoped to exploit to gain market share. GM is also facing renewed competition from Stellantis, whose Ram truck sales surged 23% year-over-year in 2026 according to AutoForecast Solutions. Pickup trucks are among GM's most profitable vehicle lines.

General Motors is planning to increase production of its heavy-duty Silverado and Sierra models. However, the workers who produce the necessary axles have now gone on strike. GM's Flint, Michigan, truck assembly plant is scheduled to begin a six-day workweek in June. Furthermore, parts from the struck plant also supply GM's Oshawa, Ontario, truck plant in Canada, which also assembles heavy-duty Silverados.

Josh Yager, a 24-year plant veteran and chair of the UAW Local 2093 bargaining committee, noted the contract expired Sunday. He said the company began stockpiling axle parts as early as January, apparently preparing for a labor dispute. He estimates GM has about a two-week supply of axles on hand as of Sunday.

Like his coworkers, Yager saw his wages cut in half in 2008, from $29 to $14.50 an hour, amid fears the plant would close. Today, most production workers at the plant top out at $22 an hour. Yager, who moved to a higher-paying skilled trade job, earns about $25 an hour.

In an interview, Yager stated that many workers are trapped in a cycle of low pay, having to take loans from their 401(k) retirement accounts every year or two to pay off credit card debt. He mentioned some work seven days a week at $22 an hour and still struggle to make ends meet.

Beyond wage increases, workers are also seeking to limit mandatory weekend overtime. Reports indicate the plant scheduled weekend work for 47 out of 52 weeks in 2023.