American Axle & Manufacturing Holdings Inc. will sell machinery and equipment from its Detroit manufacturing complex in a March 5 auction.
On the block are many machines and plant equipment used to machine forged axle components as well as factory support for things such as golf carts, according to Hilco Industrial L.L.C., a company specializing in industrial auctions and liquidations.
American Axle no longer needs the equipment as it slashes its manufacturing capacity in North America.
The Detroit-based company was working to reduce its U.S. manufacturing capacity by 70 percent while expanding capacity overseas by 150 percent, CEO Richard E. Dauch said in a Jan. 30 conference call.
The capacity cuts in the U.S. are needed to match a forecast for U.S. car and truck sales of 10 million to 12 million vehicles in 2009, Dauch said in the call.
The auctions announcement made Feb. 13 by Hilco comes as American Axle is trying to win new labor cost concessions from UAW-represented workers at its Detroit complex.
Renee Rogers, American Axle manager of corporate communications and media relations, declined to comment on the specifics of the efforts to win concessions from the UAW at the Detroit complex.
Were talking, its an ongoing process, Rogers said. We need market and labor cost competitiveness.
Rogers wouldnt disclose the targeted labor cost goal for the Detroit plant, but she said that fully loaded labor costs, including wages and benefits, at the Detroit complex were 50 percent higher than at the companys manufacturing plant in Three Rivers near Kalamazoo.