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business1d ago
Automotive sector steel demand at risk in UAW strike at American Axle: analysts
- The UAW strike at American Axle in Three Rivers began June 1 and may affect GM production if prolonged.
- GM's Silverado and Sierra output may drop, but the models accounted for only about 2% of North American production in 2025.
- Analysts note the impact could be offset if the strike is resolved quickly or if demand shifts to other models.
- American Axle relies heavily on GM, with GM being its largest customer at 44 percent of its business.
- If the strike lasts long, GM may need an alternative source of axles, potentially affecting steel demand.
- Investors reacted modestly, with GM stock down less than 1% after the strike began.
- The strike could affect steel categories used in trucks, including galvanized steel and UHSS components.
- The shutdown at American Axle could have broader effects on the auto-supply chain if extended.
- Analysts emphasised that the strike's ultimate effect depends on its length and inventory levels.
- UAW's broader wage campaign and its bargaining power could influence the sector's outlook amid current economic challenges.
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