American Axle Offers Buyouts to 6,000 Workers

uto parts supplier American Axle announced it is offering buyouts to 6,000 United Auto Workers members at five of its plants.

Buyout offers range up to $100,000 for workers who have been with the company for ten years or more, American Axle said in a statement.

The company is also withdrawing its financial guidance for this year, citing the impact of the buyout offers.

The offers come in the wake of similar news from bankrupt auto parts supplier Delphi, which in June offered $135 million in buyouts to its union workforce. (Click here for previous coverage.)

This summer, American automakers announced they would scale back production of light trucks and sport utility vehicles, sales of which floundered as gas prices rose and economic growth slowed. Auto parts suppliers, regular clients of the trucking industry, have been hard hit as a result.