Norway parts strike disrupts car production

European carmakers could decide against renewing contracts with Norwegian parts manufacturers following a six-day nationwide strike early last month. Some 85,000 Norwegian workers interrupted the flow of parts to Ford Motor Co.'s Volvo Car subsidiary, Saab Automobile AB, BMW AG, Porsche AG and Audi AG, among others. Saab, which has five Norwegian suppliers that deliver aluminum and plastic components, plus fuel tanks, for the 9-3 and 9-5 models, was forced to shut down assembly at its Trollhattan plant for a day and a half. Volvo experienced a disruption of bumper deliveries for the S80 and V70 models, while its AutoNova subsidiary also faced a parts shortage. BMW threatened it would not renew contracts with Norwegian suppliers if the strike interrupted production. The strike was settled by granting workers a $0.17 per hour pay hike, plus two more holidays in 2001 and another two days in 2002. The settlement may increase wages in Norway plants at a steeper curve than in competing nations. Norwegian auto parts makers Raufoss ASA, Hydro Automotive, Fibos AS and Kongesberg Automotive AS were forced to shut down production by the strike.