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The two sides in a union strike that has shut down a key supplier of General Motors Corp. signaled no softening of positions after an offer by GM last week to contribute $200 million toward settling the dispute – possibly in hopes of getting the auto maker to increase the offer.

Over the weekend, Ron Gettelfinger, president of the United Auto Workers, said GM’s move encouraged the supplier, American Axle & Manufacturing Inc., to take a harder line in the talks. In an interview with a Detroit radio station, Mr. Gettelfinger called GM’s offer a “mistake” and added that it dealt the negotiations a setback.

American Axle, which gets much of its business from GM, now wants to close a plant in Cheektowaga, N.Y., Mr. Gettelfinger said. That comes in addition to two other plant closures and other concessions the UAW already agreed to in past years.

“It’s going to make the talks increasingly difficult,” he said, referring to American Axle’s latest demand. “I was very, very leery when I saw that General Motors had put in $200 million.”

Despite Mr. Gettelfinger’s tough public reaction to GM’s offer, people close to both sides in the talks said the union and American Axle are hoping to force GM to play a major role in the talks. Brushing off GM’s initial offer could pressure the auto maker into proposing an even large sum.

About 3,600 American Axle workers have been on strike for about two-and-a-half months, crippling GM’s ability to build full-size pick up trucks and sports-utility vehicles. GM estimated the strike lowered its first quarter pre-tax profit in North America by $800 million.

American Axle wants the union to make similar wage and benefit concessions that it has already granted Dana Corp., another axle maker, and to accept closures of some U.S. plants. If it doesn’t get the concessions, American Axle could move more work to plants in Mexico.

According to people familiar with its thinking, American Axle believes the strike could be resolved either by the UAW relenting, or by GM stepping in to help fund a settlement.

The Axle strike puts GM in a tough spot. The company is also involved in the bail out Delphi Corp., another supplier in conflict with the UAW. GM has already committed about $8.3 billion to helping Delphi, which is in bankruptcy protection.

GM is also facing UAW strikes at two of its own plants that has halted production of some key models. A plant near Lansing, Mich., makes highly profitable “crossovers” and another in Fairfax, Kan., makes the highly touted Chevrolet Malibu sedan.

In a pair of regulatory filings made last week, American Axle and GM said the $200 million was for employee buyouts and early retirements. The offer was predicated upon an expedient resolution of the dispute.