UPDATE 2-American Axle-UAW talks stall, strike plans set

(Recasts, adds detail, background)

By Kevin Krolicki

DETROIT, Feb 25 (Reuters) - Contract talks between American Axle & Manufacturing Holdings Inc. (AXL.N: Quote, Profile, Research, Stock Buzz) and the United Auto Workers were stalled on Monday, with the union's contract set to expire, leaving local bargaining units preparing to strike.

Union officials briefed on the talks said that talks between the two sides have snagged on the union's proposal to create a "wage bridge" that would allow lower-paid new hires to earn more with eventual seniority.

Another sticking point was Detroit-based American Axle's proposals to shutter facilities, said the officials, who asked not to be named.

American Axle spokeswoman Renee Rogers said talks between the two sides were continuing as of late Monday evening.

Analysts have said a prolonged UAW strike against the Detroit-based company has the potential to disrupt production of trucks and sport utility vehicles by General Motors Corp (GM.N: Quote, Profile, Research, Stock Buzz), which ranks as the supplier's largest customer.

The UAW's current contract covering more than 3,000 union-represented workers in Michigan and New York expires at midnight Eastern Time (0500 GMT).

With the chance of a work stoppage looming, American Axle has stockpiled parts for GM, which accounts for most of its sales.