GM Strike in Canada May Force Shutdowns in U.S.

A strike against General Motors Corp. in Canada is jeopardizing its hopes for a smooth introduction of a new line of vehicles this fall and could force U.S. assembly plants to shut down if it lasts more than a couple of weeks.

The Canadian Auto Workers struck GM’s Canadian unit late Wednesday, with 15,000 members walking out at three plants in Oshawa and one in St. Therese. The union plans to spread the strike to other Canadian plants Sunday and Wednesday.

CAW President Buzz Hargrove in Toronto said he met with GM negotiators for a few hours Thursday but that there was no progress.

The world’s largest auto maker has a big stake in a successful launch of its new minivans and cars this fall, and can ill-afford any delays, said Wes Brown, an industry analyst with CMS Forecasting in Farmington Hills, Mich. GM’s current lineup has seen recent lackluster sales compared with Chrysler’s.

Several GM plants in the U.S. rely on Canadian parts and would be forced to close if their stockpiles ran out.

“You can afford to have some of your other car plants affected by the strike, but when you’re trying to launch brand-new vehicles, you don’t want that to happen,” Brown said.

The strike would have to last several weeks before car buyers would begin to notice shortages. The auto maker has about a two-month supply of cars and trucks.

Analysts said GM has prepared for a strike by boosting production and stockpiling some parts.

If the strike drags out long enough to shut down GM’s North American production, it will cost the company about $50 million a day, analysts said.

GM’s hourly workers in the United States are represented by the United Auto Workers, which has reached agreements with Chrysler and Ford but not GM.