American Axle & Manufacturing Awarded Driveline Design and Manufacturing Responsibilities for GM's Next Generation Full-Size Tru
17 Gennaio 2008 - 2:00PM
PR Newswire (US)
Announces Increase in New Business Backlog DETROIT, Jan. 17
/PRNewswire-FirstCall/ -- American Axle & Manufacturing
Holdings, Inc. (AAM), which is traded as AXL on the NYSE, today
announced that it will continue its role as driveline supplier for
the next generation of GM's full-size trucks. AAM's sales of
driveline components relating to GM's full-size pick-ups and SUVs
represent more than half of AAM's annual sales. While GM has not
yet finalized product definitions and other pertinent engineering
details, AAM expects the scope and magnitude of AAM's role on the
successor program to be substantially the same as on the existing
program. "We are extremely pleased that General Motors has
recognized AAM's exceptional capabilities in the design,
engineering, testing, validation and manufacturing of premier
driveline systems and selected us for this critical program," said
AAM's Co-Founder, Chairman and Chief Executive Officer, Richard E.
Dauch. "AAM's continued emphasis on product innovation, superior
engineering and design, as well as world-class quality, warranty,
delivery, and launch performance is attracting significant new
business in our expanding global market. Our worldwide team is
dedicated to the application of AAM's expertise in these areas to
further develop high-efficiency axle technology for this and other
new customer programs." 2008-2012 New Business Backlog AAM also
announced that its backlog of new and incremental business
launching from 2008 through 2012 has been increased to $1.3 billion
in future annual sales. AAM measures its new and incremental
business backlog ("new business backlog") by the estimated annual
sales value of agreements with its customers to provide axle or
other driveline or drivetrain products for future product programs,
as well as incremental content or volume awards on existing
programs, including customer requested engineering changes. AAM's
new business backlog may be impacted by various assumptions such as
production volume estimates, changes in program launch timing and
fluctuation in foreign currency exchange rates. AAM's new business
backlog reflects the company's successful efforts to expand its
product portfolio by adding all-wheel-drive applications for
passenger cars and crossover vehicles, expanded electronics
integration and new drivetrain components such as transfer cases
and power transfer units. Recent new business wins include the
following: -- On October 30, 2007, AAM announced the formation of a
new joint venture (JV) in India (AAM Sona Axle Private Limited).
The JV will provide axles to Tata Motors for a light duty truck
program beginning in the second half of 2008. -- AAM has earned an
order from Mahindra International Limited (MIL) to provide driving
heads in India for a commercial vehicle program. MIL is a joint
venture involving Mahindra & Mahindra Limited from India and
International Truck & Engine Corporation (ITEC) from the U.S.
-- AAM has earned its first major award from Volkswagen AG to
supply the rear driveline system for a new global light vehicle
program launching in 2009. -- AAM has earned its first award from
Chery Automobile Co., Ltd. to produce rear drive modules (RDM) for
a 2010 model-year crossover vehicle. Other highlights of AAM's $1.3
billion new business backlog include: -- Approximately 75% of the
new business backlog has been sourced to AAM's non-U.S. facilities.
These awards will accelerate the expansion of AAM's manufacturing
facilities in Mexico, South America, Asia and Europe. These awards
will also lead to the construction of new facilities in India and
Thailand in 2008. -- Approximately half of the new business backlog
relates to awards supporting rear-wheel-drive and all-wheel-drive
passenger car and crossover vehicle applications. These awards
relate to 10 different product programs developed by four different
customers launching in at least four major regional markets. -- AAM
will launch approximately 60% of its new business backlog in the
2008, 2009 and 2010 calendar years. The balance of the backlog will
launch in 2011 and 2012. AAM will be presenting at the 2008 Auto
Analyst of New York (AANY) Detroit Auto Show Conference on
Thursday, January 17, 2008 at 10:15 a.m. EST. AAM will webcast the
presentation through AAM's investor web site at
http://investor.aam.com/. The presentation will be made by AAM's
Co-Founder, Chairman & CEO Richard E. Dauch. AAM has also
scheduled a conference call to review its fourth quarter and full
year 2007 results on February 1, 2008 at 10:00 a.m. EST. Interested
participants may listen to the live conference call by logging onto
AAM's investor web site at http://investor.aam.com/ or calling
(877) 278-1452 from the United States or (706) 643-3736 from
outside the United States. AAM is a world leader in the
manufacture, engineering, design and validation of driveline and
drivetrain systems and related components and modules, chassis
systems and metal-formed products for light trucks, sport utility
vehicles, passenger cars, crossover utility vehicles and commercial
vehicles. In addition to locations in the United States (Michigan,
New York, Ohio and Indiana), AAM also has offices or facilities in
Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland,
South Korea and the United Kingdom. Certain statements contained in
this press release are "forward-looking statements" and relate to
the Company's plans, projections, strategies or future performance.
Such statements are made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995 and are based
on our current expectations, are inherently uncertain, are subject
to risks and should be viewed with caution. Actual results and
experience may differ materially from the forward-looking
statements as a result of many factors, including but not limited
to: adverse changes in the economic conditions or political
stability of our principal markets (particularly North America,
Europe and South America); reduced demand of our customers'
products or volume reductions, particularly for light trucks and
SUVs produced by GM and Chrysler LLC's heavy-duty Dodge Ram
full-size pickup trucks, or the Dodge Ram program; work stoppages
at GM or Chrysler LLC or a key supplier to GM or Chrysler LLC; our
ability to achieve cost reductions through accelerated attrition
programs; reduced purchases of our products by GM, Chrysler LLC or
other customers; our ability and our customers' ability to
successfully launch new product programs; our ability to respond to
changes in technology or increased competition; supply shortages or
price fluctuations in raw materials, utilities or other operating
supplies; our ability to maintain satisfactory labor relations and
avoid work stoppages; risks of noncompliance with environmental
regulations or risks of environmental issues that could result in
unforeseen costs at our facilities; liabilities arising from legal
proceedings to which we are or may become a party or claims against
us or our products; availability of financing for working capital,
capital expenditures, research and development or other general
corporate purposes, including our ability to comply with financial
covenants; adverse changes in laws, government regulations or
market conditions affecting our products or our customers' products
(including the Corporate Average Fuel Economy regulations); our
ability to attract and retain key associates; and other
unanticipated events and conditions that may hinder our ability to
compete. For additional discussion, see "Item 1A. Risk Factors" in
our most recent annual report on Form 10-K and quarterly reports on
Form 10-Q. It is not possible to foresee or identify all such
factors and we assume no obligation to update any forward-looking
statements or to disclose any subsequent facts, events or
circumstances that may affect their accuracy. DATASOURCE: American
Axle & Manufacturing Holdings, Inc. CONTACT: Media: Renee B.
Rogers, Manager, Corporate Communications and Media Relations,
+1-313-758-4882, ; or Investors: Jamie M. Little, Director,
Investor Relations, +1-313-758-4831, Web site: http://www.aam.com/
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