DETROIT — Nexteer Automotive, a supplier of steering and driveline products, said it would begin temporary layoffs if the UAW's strike against General Motors isn't resolved quickly.
Dennis Hoeg, North America division president of Nexteer, said in a statement late Wednesday that "without an imminent resolution, Nexteer faces the difficult conclusion to temporarily reduce our workforce in the coming days due to the disruption in GM production."
He didn't provide a number of expected layoffs or a timeline.
"Our goal is to return to full production as quickly as possible," he said in the statement.
Leaders at UAW Local 699, which represents Nexteer workers in Saginaw, Mich., did not immediately respond to a request for comment.
The UAW's strike against GM began at 11:59 p.m. Sunday. Forecasting firm LMC Automotive said GM would lose production of about 7,700 vehicles per day as long as the strike continued.
Nexteer, of Auburn Hills, Mich., ranks No. 60 on the Automotive News list of the top 100 global suppliers, with global parts sales to automakers of $3.91 billion in 2018.
Earlier in the week, suppliers had not yet been instructed by GM to slow or stop production, said Steven Wybo, senior managing director of turnaround advisory firm Conway MacKenzie.
"Release schedules from GM to suppliers haven't changed yet," Wybo said at the time. "Beyond a week, I see releases going down substantially, which is when we'll start to see some suppliers suffer."
Crain's Detroit Business contributed to this report.
