UPDATE 2-American Axle says UAW contract talks stall

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By Kevin Krolicki

DETROIT, May 13 (Reuters) - Auto parts supplier American Axle & Manufacturing Holdings Inc (AXL.N: Quote, Profile, Research, Stock Buzz) said on Tuesday contract talks with the United Auto Workers union aimed at settling a three-month-old strike had stalled since Sunday.

The Detroit-based supplier, which relies on General Motors Corp (GM.N: Quote, Profile, Research, Stock Buzz) for about 80 percent of its sales, said negotiations were snagged on two issues: health-care benefits and supplemental unemployment benefits.

It issued a statement in an update on contract talks. A UAW spokesman had no immediate comment.

About 3,650 UAW-represented workers have been on strike at five American Axle plants in Michigan and New York since late February.

The work stoppage has shut down much of GM's North American production of trucks and large SUVs since the automaker relies on American Axle to supply components for those vehicles.

Last week, GM offered $200 million to help American Axle fund buyouts and other one-time payments to remaining workers in exchange for their speedy ratification of a contract that would give the supplier the sharply lower hourly wages it says it needs to compete.

American Axle said the two sides made progress on "numerous issues" in talks over the past weekend.