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Strike hurts more than GM
General Motors isn't the only company laying off workers
because of the devastating strikes at two plants in Flint,
Michigan.
Other parts suppliers are having to close their doors.
- Lear Corp., whose seats go into Chevrolet Luminas and Buick
Regals, has had to idle 2,000 workers. And other parts
manufacturers are beginning to lay off workers, too.
- Cooper Industries, which supplies lighting fixtures for
Corvettes and Firebirds, says the strike is costing it about
$1 million a month in lost sales. Cooper trimmed its second-
quarter earnings expectations, due in part to the strike.
"The ripple effect on GM suppliers is profound," said John
Casesa, an auto analyst for Schroders. "GM represents
anywhere between 15 and 20 percent of the sales of most big
suppliers. So these are lost sales and lost profits. And
you'll see it in their second-quarter results."
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Correspondent Fred Katayama contributed to this report.
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