American Axle & Manufacturing Holdings Inc. reported recently it has a backlog of new and incremental business it estimates will yield annual sales of $1.4 billion from 2006 to 2012.
The Detroit-based forging chain said the orders illustrate recent efforts to expand its product portfolio toward the global driveline and drivetrain markets, and to diversify the customer base. It lists new business from Nissan, Audi, Ssangyong, Hino, Jatco, Koyo, and Harley Davidson, as well as General Motors and the Chrysler Group.
The company indicated the rising volume of orders outside North America was "the catalyst" to its recent decision to build a new manufacturing facility in China, and it indicated future plans to expand in Eastern or Central Europe
AAM's new business backlog includes seven driveline system awards for passenger car and crossover vehicle programs with three global OEMs. Two of these awards support global rear-wheel-drive passenger car programs, and five are for crossover vehicle programs. These seven programs will feature AAM's newest rear-wheel drive and all-wheel drive technologies, and the company expects sales over $600 million from them.
Also, the new business includes assignments that support AAM's light truck and SUV lines. Among the other details the company highlights:
- Over $200 million of new business outside of North America.
- Approximately $150 million of new business with Asian OEMs and their affiliates.
- AAM will launch its first high-volume application of the SmartBar electronic stabilizer system for the 2007 Jeep Wrangler Rubicon.
- Approximately 60% of the new business backlog will be initiated in 2006-2008, and the other 40% in 2009-2012.
According to chairman Richard E. Dauch, "AAM continues to focus on its long-term strategic goals of expanding our product portfolio, served markets, customer base and global manufacturing footprint. The continued expansion of AAM's new business backlog is evidence that we are successfully delivering on these initiatives."