American Axle & Manufacturing Announces New Business in Korea

Contract is with Ssangyong Motors

American Axle & Manufacturing (AAM) has announced it has been awarded a lifetime production contract for new business with Korean automaker Ssangyong Motors. Under this contract, AAM will supply independent front and independent rear-drive axles for multiple new Ssangyong vehicle programs. It is the first phase of a General Cooperation Plan between AAM and Ssangyong that is intended to provide Ssangyong Motors with world-class driveline technology, products and support.

The independent front drive axle (IFDA) incorporates AAM's proven aluminum PowerLite design for reduced weight while providing superior noise, vibration and harshness performance and packaging. The IFDA provides lower vehicle height and weight reduction for improved fuel economy, as well as improved road handling, performance, durability, and operating temperature control.

The independent rear drive axle (IRDA) utilizes AAM's PowerLite aluminum carrier as well as AAM's state-of-the-art, high technology PowerDense ring and pinion gear design. Produced using advanced material, thermal and mechanical processes, PowerDense gear sets are capable of carrying more torque in a smaller package with less noise.

"This is an extremely exciting program for AAM," said Co-Founder, Chairman & CEO Richard E. Dauch. "Ssangyong is a leading Korean producer of SUVs and all-wheel-drive vehicles for the Asian market. This program represents our first penetration into the Asian market, and demonstrates our commitment to global expansion and diversification of our customer base. It also symbolizes our ability to meet our customers' quality, technology and delivery requirements, wherever on the globe they are located."

Under the contract, AAM expects revenues of approximately $40 million annually when it is fully launched beginning in 2005.

AAM is a world leader in the manufacture, design, engineering, and validation of driveline systems and related components and modules, chassis systems and forged products for trucks, sport utility vehicles and passenger cars. In addition to its 14 locations in the United States (in Michigan, New York and Ohio), AAM also has offices and facilities in Brazil, England, Germany, Japan, Mexico and Scotland.

AAM’s Forging Division includes Cheektowaga Machining Facility, Cheektowaga, NY; Tonawanda Forge Facility, Tonawanda, NY; Colfor Manufacturing, with operations in Malvern, Minerva, and Salem, OH; Detroit Forge Facility, Detroit; and MSP Industries, with operations in Centerline and Oxford, MI.

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