American Axle & Manufacturing Holdings Inc. reports its order backlog has increased by almost $500 million to over $1 billion in future annual sales. This increase is an indicator of “the incremental expansion of (AA&M’s) existing light truck and SUV product lines to support new programs and derivative models,” the company stated. The backlog also reflects successful efforts to expand the company’s product offerings by adding passenger car and crossover vehicle applications using independent front-drive axles (IFDA), rear-drive modules (RDM), and independent rear-suspension modules (RSM).
Based in Detroit, AA&M designs and manufactures driveline systems and related components and modules, chassis systems, and metal-formed products for light trucks, sport-utility vehicles, and passenger cars.
Among the highlights of the new orders are:
- 30% of AA&M’s new business backlog incorporates AA&M’s newest technology for passenger cars and crossover vehicles.
- $100 million of AA&M’s new business backlog relates to product programs outside of North America.
- AAM has been awarded two new contracts by Asian OEMs. One of these awards represents AA&M’s first opportunity to provide front- and rear-axle modules to a foreign customer for a major North American product platform. AA&M will also provide IFDA and RDM to Ssangyong Motor Corporation for multiple new vehicle programs beginning in the 2006 model year.
- AA&M has won a contract with a major global OEM to provide a complete driveline system utilizing IFDA, RDM and RSM for a rear-wheel-drive passenger car program planned for at least two separate geographic markets.
AAM will launch approximately two-thirds of its new business backlog in the 2005, 2006, and 2007 calendar years. The balance of the business will be launched between 2008 and 2010.
"AAM's cost competitiveness, world-class quality, warranty and delivery performance are major differentiators for us in today's global automotive supply market," said American Axle & Manufacturing chairman Richard E. Dauch. "This significant increase in our new business backlog confirms that our ability to develop innovative advanced technology products, with integrated electronics and efficient packaging, is helping to expand our customer base and served markets."