GM offers $200 million in bid to end Axle strike

By Kevin Krolicki and Soyoung Kim

DETROIT (Reuters) - General Motors Corp (GM.N: Quote, Profile, Research, Stock Buzz) on Thursday has offered American Axle & Manufacturing Holdings (AXL.N: Quote, Profile, Research, Stock Buzz) $200 million in a bid to clinch a speedy resolution of a strike against a key supplier that has run for more than two months.

American Axle, which in ongoing talks has pressed the United Auto Workers union for deep concessions on labor costs, said the GM offer hinged on a quick resolution to the strike.

Analysts said the offer could also clear the way for GM to restart production of hot-selling models like the Chevrolet Malibu and Buick Enclave.

GM said in a filing with the U.S. Securities and Exchange Commission it had agreed to provide American Axle with up to $200 million to help fund buyouts and one-time payouts for returning union workers to accept lower hourly wages.

"We believe that the offer will help bridge the gap between American Axle and the UAW and the two parties will be able to reach a mutually satisfactory settlement in the near future," GM spokesman Dan Flores said.

A UAW spokesman was not available to comment.

American Axle spokeswoman Renee Rogers said the funds GM would provide would not have to be repaid by the supplier, which was spun off from the automaker in 1994.

In addition, GM has not asked for concessional pricing on future component shipments to offset the money it is offering to broker a quick end to the work stoppage, she said.