Analyst: Axle strike a “waiting game”
April 21st, 2008 | by Manufacturing Business |Analyst: Axle strike a “waiting game”.
Expect a long strike at American Axle & Manufacturing Holdings Inc., a research analyst told clients in a recent note.
Brett Hoselton of KeyBanc Capital Markets said the auto parts supplier has enough cash reserves to wait out the United Auto Workers union, which struck four weeks ago and is in no hurry to settle without getting what it wants.
He described the strike as a ‘waiting game’ with the company holding a strong position.
‘The upper hand clearly goes to (American Axle) which has $350 million in cash on the balance sheet, does not need to supply GMT900 pickup truck axles for quite some time and has recently begun producing axles for the GMT900 SUV in its Mexican facility,’ Hoselton wrote.
The Detroit-based company (NYSE: AXL), which is a key supplier to General Motors Corp.
