Announces Increase in New Business Backlog
DETROIT, Jan. 17 -- 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:
o 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.
o 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.
o AAM has earned its first major award from Volkswagen AG to supply the
rear driveline system for a new global light vehicle program launching
o AAM has earned its first award from Chery Automobile Co., Ltd. to
produce rear drive modules (RDM) for a 2010 model-year crossover
Other highlights of AAM's $1.3 billion new business backlog include:
o 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.
o 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.
o 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 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 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.
Source: American Axle & Manufacturing Holdings, Inc.
CONTACT: Media: Renee B. Rogers, Manager, Corporate Communications and Media Relations, +1-313-758-4882, [email protected];
Web site: http://www.aam.com/