Workers in KC go on strike
GM plant produces high-selling Malibu.

KANSAS CITY, Kan. (AP) - Members of a United Auto Workers union local went on strike today at General Motors’ Fairfax facility, hitting the plant that makes GM’s popular Malibu sedan.

During talks over the weekend, UAW Local 31 set a strike deadline of 9 a.m. today after union negotiators decided that a settlement was not near. The Fairfax plant employs more than 2,500 UAW members.

The plant makes the Chevrolet Malibu, a medium-sized sedan that was named "Car of the Year" at this year’s North American International Auto Show in Detroit.

The strike hits a key GM product at a time when the company can ill afford it. Last week, GM announced that it lost $3.3 billion in the first quarter largely because of one-time charges and North American losses that offset gains in the rest of the world.

GM spokesman Dan Flores in Detroit said the company is disappointed that the union chose to walk out.

He said GM might boost Malibu production at the Orion Township, Mich., factory.

"As a result of the strike, we will be looking at all of our options, but our main focus is to continue the bargaining and reach an agreement as soon as we can," he said.

With truck and sport utility vehicle sales dropping, the redesigned 2008 Malibu made here has been a bright spot in GM’s lineup because it can carry a family yet can get 30 miles per gallon or more on the highway depending on how it’s equipped.

From January through April, GM had sold 58,126 Malibus, up 32 percent from the same period last year. Sales were up 55 percent in April. A strike will crimp production and hurt GM’s profits. Workers at the Orion Township plant have approved a local contract.

Industry analysts have speculated that the strikes are an effort by the UAW to get GM to put pressure on American Axle and Manufacturing Holdings Inc. to settle a bitter nine-week strike.

UAW President Ron Gettelfinger has said disputes at the GM plants are about local contract issues and have nothing to do with American Axle.

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