Striking Workers Forcing GM to Cut Production of Their Full Sized Trucks and SUVs

GM, because of the American Axle and Manufacturing Holdings strike, is cutting production of their 2008 full sized trucks and SUVs. That includes the GMC Yukon and Chevy Tahoe. It's unclear whether the production cuts also affect their new oversized SUV hybrids.

If it does, and as the two-mode hybrids from GM are just trying to get off the ground, this could have severe repercussions in the coming years for GM's efforts to compete in the hybrid marketplace.

Add in the trouble from battery suppliers, and Ford and GM may fall off completely.

Ford currently sources batteries from Sanyo in Japan. As a result, batteries—the most expensive component in a hybrid system—are coming at an increasing cost to Ford due to a weak dollar. GM also has battery woes. Cobasys, which supplies battery packs for Saturn hybrids and the Malibu Hybrid, was put on GM’s distressed supplier list after the company was left with no operating budget for this fiscal year.

If Ford really is having trouble with their battery supplier, it also makes me wonder if Ford will start making a profit this year from their hybrid division.

Photo from flickr by ampersandyslexia.