American Axle has seven plants and three technical centers in the U.S., but expects about 70% of its new and incremental business will be offshore during 2014-16.

American Axle’s Orders Estimated at $900 Million

Jan. 15, 2014
All-wheel drive package for Jeep Hybrid powertrain system More car, crossover business

Tier One automotive supplier American Axle & Manufacturing Holdings Inc. estimated its new and incremental business is worth $900 million over the next two years (2014-2016), and offered selected details of its manufacturing organization in an annual outlook statement. AAM designs and manufactures driveline and drivetrain systems for light trucks, SUVs, passenger cars and crossover vehicles, as well as commercial vehicles.

The organization also produces driveline/drivetrain components and modules, chassis systems, and other formed products. It has seven manufacturing plants and three technical centers in Indiana, Michigan, Ohio, and Pennsylvania, and manufacturing operations in Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland, Scotland, South Korea, Sweden, and Thailand.

Included in the new business it announced, AAM will be supplying its EcoTrac all-wheel drive system for the new Jeep Cherokee; rear-drive modules for the Cadillac CTS; and its e-AAM™ hybrid driveline package for China’s Qoros Auto Co. Ltd.’s forthcoming vehicles.

The supplier estimated that about 70% of its new and incremental business for the 2014-16 period is for customers other than General Motors — an important reference for a company founded as a spinoff of GM operations. Other customers it identified are Chrysler, Daimler Truck, Ford, Honda, Jaguar Land Rover, Mercedes Benz, Nissan, and Tata Motors.

Another point AAM emphasized is the rising volume of passenger car and crossover vehicle programs it is supplying, approximately $600 million over its two-year outlook period.

AAM also noted that approximately 70% ($630 million) of the new business involves vehicle programs underway in overseas markets, including Brazil, China, India, and Thailand.

According to chairman, president and CEO David C. Dauch, "AAM’s robust new business backlog supports our ability to exceed the growth rate expected for the industry through 2015."