American Axle & Manufacturing Holdings estimated income totaling $1.25 billion over three years from new and incremental business, for projects launching in 2013 through 2015. The manufacturer of driveline and drivetrain systems and components indicated this total represents an increase of approximately 4% over the previous three-year (2012-2014) period, and illustrates its efforts to expand global marketing and introduce new products.
The value of the new business is based on production-volume estimates and program design direction provided by AAM’s customers. The actual sales value will depend on product volumes, program launch timing, and foreign currency exchange, according to the company.
One highlight of the forecast is the first contract for AAM's EcoTrac™ all-wheel drive system for an unidentified passenger car and crossover vehicle program. That order is due to begin in 2013.
The manufacturer explained that more than half the income in the three-year forecast would be drawn from customers other than General Motors Corp., the automaker that from which AAM was spun off in 1994. The new business includes contracts from Chrysler, Daimler Truck, Ford, Honda, Mercedes Benz, and Nissan, among others, AAM stated.
Approximately two-thirds of the new business for 2013-2015 is for passenger car, crossover vehicle, and commercial vehicle programs, the supplier noted. Also, approximately 40% of the business concerns vehicle manufacturing programs outside North America, which AAM said reaffirms its efforts to expand into local manufacturing in Brazil, China, India, and Thailand.
AAM has manufacturing plants in Indiana, Michigan, New York, and Ohio, as well as wholly owned and joint-venture operations in Brazil, China, India, Japan, Mexico, Poland, and the U.K.
"AAM’s success in growing the new business backlog is supporting our ability to grow faster than the industry with an estimated compound annual growth rate of greater than 10% from 2012 through 2015," stated president and CEO David C. Dauch.
"We are pleased that our focused R&D investment is driving AAM to deliver on our long-term strategic goals of expanding and diversifying our customer base and product portfolio on a global basis, while meeting the market demands of fuel efficiency, reduced emissions, safety, ride and handling," he concluded.