American Axle Forecasts $850 Million in New Orders

New and incremental business for 2011-2013 shows progress at expanding, diversifying product range, customer base, and markets


American Axle & Manufacturing is forecasting annual sales of $850 million based on orders for new and incremental business it plans to launch between 2011 and 2013. The Detroit-based designer and manufacturer of driveline and drivetrain systems indicated the outlook represents new business that would be 20% higher than its previous three-year backlog for 2010-2012.

AAM also produces a range of other components and modules, chassis systems and metal-formed products for trucks, SUVs, cars and crossover utility vehicles. Its metal forming plants include several hot, warm, and cold forging operations for drivetrain and axle components, and other critical parts.

The sales forecast is based on customers’ production volume estimates and program design direction. Actual sales revenue will depend on product volumes, program launch timing, and foreign currency exchange, AAM said.

Noting that several of the new orders are for recently introduced products, the company claimed success for its efforts to diversify its business and expand its customer base. AAM says it is on track to achieve its 2013 sales goal of $3 billion.

"The continued expansion of AAM's new business backlog demonstrates that we are successfully delivering on our long-term strategic goals of expanding and diversifying AAM's product portfolio, customer base, served markets and global manufacturing footprint," said AAM chairman and CEO, Richard E. Dauch. "We are especially pleased with the first orders for AAM's EcoTrac brand of fuel-efficient and environment-friendly driveline products.”

EcoTrac is brand of fuel-efficient driveline products that AAM introduced in October, consisting of an all-wheel-drive (AWD) fuel-economy optimization system, e-AWD systems, and a series of high-efficiency axles. The e-AWD is an electric all-wheel-drive system for passenger cars and crossover vehicles being produced by a new joint venture — e-AAM Driveline Systems AB — that AAM established with Saab Automobile AB in September.

AAM also highlights its success at diversifying its customer base, with more than 50% of the $850 million in new and incremental coming from customers other than General Motors — traditionally its most consistent customer. It lists Audi, Chrysler, Daimler Truck, Mack Truck, Mercedes, Nissan, Saab, Scania, Volkswagen and others in its 2011-2013 order book.

The company also emphasized that more than 60% its $ new and incremental business backlog is for programs sourced outside of North America, including Brazil, China, India and Thailand.


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