American Axle & Manufacturing closes plant.

**rjk** · February-26-12, 07:45 AM

http://www.wxyz.com/dpp/news/region/...od-at-midnight

**Scottathew** · February-26-12, 07:52 AM

Companies are greedy.

So are unions.

**Wheels** · February-26-12, 08:43 AM

Has anyone heard if their "World Headquarters" that is actually in Detroit is staying open?

**313WX** · February-26-12, 10:56 AM

Not surprised, coming a week or two after the annoucement from McClure Pickles.

So we trade thousands of well-paying manufacturing jobs for 20 pickle jobs. Brilliant planning by our leaders!!!

**Hermod** · February-26-12, 11:22 AM

Originally Posted by 313WX

Not surprised, coming a week or two after the annoucement from McClure Pickles.

So we trade thousands of well-paying manufacturing jobs for 20 pickle jobs. Brilliant planning by our leaders!!!

What did our "leaders" have to do with it? I have seen this before where a company keeps an under-performing facility open because of political correctness or because of sentiment. They end up being a real money sink.

**adamjab19** · February-26-12, 11:24 AM

Originally Posted by 313WX

Not surprised, coming a week or two after the annoucement from McClure Pickles.

So we trade thousands of well-paying manufacturing jobs for 20 pickle jobs. Brilliant planning by our leaders!!!

You gotta start somewhere!

**313WX** · February-26-12, 11:33 AM

Originally Posted by Hermod

What did our "leaders" have to do with it?

Per my sources, the ultimate reason AAM left is because the city of Detroit took away their tax breaks.

**swingline** · February-26-12, 12:23 PM

Originally Posted by 313WX

Per my sources, the ultimate reason AAM left is because the city of Detroit took away their tax breaks.

What tax breaks? Why were they taken away?

**Detroitnerd** · February-26-12, 12:38 PM

Originally Posted by swingline

What tax breaks? Why were they taken away?

I'm not so sure about that. They moved all those jobs to Mexico after/during a fractious UAW strike. [[I had to drive by it day after day.) Then they became "Mexican Axle" and I'm not sure it had anything to do with tax breaks. A lot of the plant, if not most, is in Hamtramck, and Hamtramck was really hit hard by that.

**MikeM** · February-26-12, 12:44 PM

Originally Posted by swingline

What tax breaks? Why were they taken away?

http://www.freep.com/article/2011120...-American-Axle

**313WX** · February-26-12, 12:45 PM

Originally Posted by swingline

What tax breaks? Why were they taken away?

http://www.hamtramckreview.com/2011/...0%99s-getting/

**PlymouthRes** · February-26-12, 12:46 PM

Nice PC terminology there, DN. I'm sure the Mexicans appreciate your all-knowing commentary.

In any event, most suppliers [[and automotives) have begun a mass exodus of these "offshore" entities as they have finally realized that the potential gain they thought they would get by going cheaper with the services they were receiving was a disaster, and, in the end, they spent more fixing the mistakes from going offshore than they bargained for.

Ford, for a fact, has not only brought work back but is now doing a MAJORITY of both design and manufacturing in house......

**MikeM** · February-26-12, 12:48 PM

Although this tax break has nothing to do with the closing of the plant yesterday.

**Gannon** · February-26-12, 12:55 PM

While he doesn't talk about his work at all, a fella I know has been travelling to the far-reaches of the globe to new American Axle facilities...just beyond civilization in India and such...so this has been going on for some time. I was under the impression that the only thing happening at the Hamtown location was administration, after the strike ended they very publicly laid everyone off. Haven't seen much activity in their parking lots for years.

**poobert** · February-26-12, 02:03 PM

The main motivator: Greed. Mexican auto supply workers make $1.50 per hour.
http://www.businessweek.com/magazine...5/b4029081.htm

So this is the almighty free market at work. What are we supposed to do here? Work for $1.45 an hour in hopes our corporate overlords will keep the jobs here? Then someone in Vietnam will be willing to work for $1.00 per hour...

There should be stiff taxes and penalties for American companies who offshore most of their work. I'd also like to say their should be incentives for companies who invest here, but it seems like every municipality and state has to give away millions of taxpayer dollars to essentially bribe companies to stay here [[after being blackmailed by them, of course).

I can tell you the system is broken and it ain't "big government" or "big labor" as imperfect as they may be.

**Detroitnerd** · February-26-12, 02:08 PM

Originally Posted by PlymouthRes

Nice PC terminology there, DN. I'm sure the Mexicans appreciate your all-knowing commentary.

It is a nice gag. I wish I could take credit for it, but I've heard it around Hamtramck as a running joke. For the people who lost their jobs or for the residents of a city that took a huge tax hit, it's black humor, trust me.

**Johnnny5** · February-26-12, 02:31 PM

Originally Posted by PlymouthRes

In any event, most suppliers [[and automotives) have begun a mass exodus of these "offshore" entities as they have finally realized that the potential gain they thought they would get by going cheaper with the services they were receiving was a disaster, and, in the end, they spent more fixing the mistakes from going offshore than they bargained for.

Ford, for a fact, has not only brought work back but is now doing a MAJORITY of both design and manufacturing in house......

Every source I have found shows domestic parts content on Ford vehicles consistently going down, not up. If you have anything to show that what you say it true please post a link. I would be very interested in seeing it.

**Wheels** · February-26-12, 04:25 PM

Originally Posted by MikeM

http://www.freep.com/article/2011120...-American-Axle

The tax breaks were from Detroit for their World Headquarters that is the only one of their building in Detroit. The rest of the plants are in Hamtramck. That is why I questioned earlyier if they are keeping the headquarters open. That and Three Rivers Mi. are about the only "AMERICAN" holdings they have left.

**karenka** · February-26-12, 07:11 PM

Actually, almost the entire American Axle complex is on the Detroit side of the border. One complete building on St. Aubin south of Holbrook is in Hamtramck, as well as only part of the building at St. Aubin and Holbrook [[the city border runs right down the factory floor), and a couple of parking lots.

**p69rrh51** · February-26-12, 07:27 PM

Originally Posted by poobert

The main motivator: Greed. Mexican auto supply workers make $1.50 per hour.
http://www.businessweek.com/magazine...5/b4029081.htm

So this is the almighty free market at work. What are we supposed to do here? Work for $1.45 an hour in hopes our corporate overlords will keep the jobs here? Then someone in Vietnam will be willing to work for $1.00 per hour...

There should be stiff taxes and penalties for American companies who offshore most of their work. I'd also like to say their should be incentives for companies who invest here, but it seems like every municipality and state has to give away millions of taxpayer dollars to essentially bribe companies to stay here [[after being blackmailed by them, of course).

I can tell you the system is broken and it ain't "big government" or "big labor" as imperfect as they may be.

Corporate overlord??? How about typical lazy union employees!!! I had a chance to chat with one of the labor lawyers for AMM a few years ago, and the workers on Holbrook were being paid for 40 hours of labor and only averaging 28 hours of actual work. For many years they were negotiating just to raise the average actual hours to 30 a week with the union resisting every time. Now we all would love to get paid for 10-12 hours of non work a week but as a small employer I am appalled that they had to put up with that. I do not blame them for leaving if you ran the company would you stay??

**canuck** · February-26-12, 07:38 PM

Originally Posted by p69rrh51

Corporate overlord??? How about typical lazy union employees!!! I had a chance to chat with one of the labor lawyers for AMM a few years ago, and the workers on Holbrook were being paid for 40 hours of labor and only averaging 28 hours of actual work. For many years they were negotiating just to raise the average actual hours to 30 a week with the union resisting every time. Now we all would love to get paid for 10-12 hours of non work a week but as a small employer I am appalled that they had to put up with that. I do not blame them for leaving if you ran the company would you stay??

It must have been an appalling thing for a lawyer to witness overpaid folks plundering AA coffers.
Now at least Axolotl Corporation can pay 28 hours at 1buck an hour and be quite a bit more demanding with no lip from the staff.

**Hermod** · February-26-12, 08:00 PM

Originally Posted by poobert

The main motivator: Greed. Mexican auto supply workers make $1.50 per hour.
http://www.businessweek.com/magazine...5/b4029081.htm

So this is the almighty free market at work. What are we supposed to do here? Work for $1.45 an hour in hopes our corporate overlords will keep the jobs here? Then someone in Vietnam will be willing to work for $1.00 per hour...

There should be stiff taxes and penalties for American companies who offshore most of their work. I'd also like to say their should be incentives for companies who invest here, but it seems like every municipality and state has to give away millions of taxpayer dollars to essentially bribe companies to stay here [[after being blackmailed by them, of course).

I can tell you the system is broken and it ain't "big government" or "big labor" as imperfect as they may be.

It is the free market at work. AXL lost $4.63 a share in 2008 and $2.37 a share in 2009. In 2009, their stock hit an all time low of thirty cents a share. Right now, General Motors work makes of 75% of their top line. They are going for the future and trying to sell products to off-shore manufacturers. The new factory in Thailand will produce parts for Asian car manufacturers. Hopefully, they will be able to pay don their debt and remain a going concern.

**rjk** · February-26-12, 08:04 PM

I just read a story on AAM that stated that the world headquarters was built in 04.
Does anyone know what was there prior to 04? Also were the factory buildings part of another company or were they built around the same time?

**poobert** · February-26-12, 09:09 PM

Originally Posted by Hermod

It is the free market at work. AXL lost $4.63 a share in 2008 and $2.37 a share in 2009. In 2009, their stock hit an all time low of thirty cents a share. Right now, General Motors work makes of 75% of their top line. They are going for the future and trying to sell products to off-shore manufacturers. The new factory in Thailand will produce parts for Asian car manufacturers. Hopefully, they will be able to pay don their debt and remain a going concern.

And reward the inept CEO with $8.5 million after the "greedy union workers" take concessions.

You hope for the best for a company that just closed up shop in your hometown and moved most of their operations out of your country.

For a bunch of "conservatives" you strike me more as submissive, masochistic traitors.

**p69rrh51** · February-26-12, 11:09 PM

Originally Posted by canuck

It must have been an appalling thing for a lawyer to witness overpaid folks plundering AA coffers.
Now at least Axolotl Corporation can pay 28 hours at 1buck an hour and be quite a bit more demanding with no lip from the staff.

Yes very appalling but then it was theirs to plunder, the company was not owned by the employees! Also the myth of the perfect union employee especially in this area is just that a MYTH!