General Motors selected American Axle & Manufacturing as the target supplier to provide axles and driveshafts in its “next generation full size truck program,” operating under GM's Strategic Sourcing Process (SSP). That process aims to involve major program suppliers into the design and development process before new vehicle designs have been fully finalized.
“Pending final design direction and completion of the sourcing process, AAM expects to retain approximately 75% of the sales content provided to GM for the current full-size truck program,” according to its announcement.
General Motors is among the largest buyers of American Axle products, in the range of 30% of all products during 2014-2016, according to information AAM released last year.
"With the strategic sourcing of multi-generations of this program now clarified, AAM is pleased to reaffirm our long-term partnership with GM," stated American Axle chairman David C. Dauch. "AAM's innovative product, process and systems technology, as well as our cost-competitive global manufacturing, engineering and sourcing footprint, provides a compelling value proposition to all of our customers, including GM."
Dauch is also CEO of the company, though American Axle named Michael K. Simonte to take his place as president.
The automaker is not expected to introduce redesigned versions of its full-size Chevrolet Silverado and GMC Sierra pickup trucks until the fall of 2018, to be identified as the 2019 model year, although some design revisions may be introduced sooner. GM’s full-size SUVs would be reintroduced in a subsequent model year.
Ford Motor Co.’s aluminum-intensive F-150 has focused design concerns for pickup trucks on lighter weight designs, but General Motors is not expected to embrace aluminum to the same extent as its rival has done.
American Axle produces different versions of rear axles and rear drive modules; drive and non-drive front axles; rear driveshafts for rear-wheel, four-wheel and all-wheel-drive vehicles; and front auxiliary shafts for four-wheel and all-wheel-drive vehicles.
The company stated it expects to provide approximately 75% of the light-duty axles, 100% of the heavy-duty axles, and 100% of the rear steel driveshafts for GM's next generation full size truck program. It added it does not expect to provide the aluminum driveshafts, front auxiliary driveshafts and steering linkages for GM's next generation full size truck program.
"With the direction of a core program of AAM's business now solidified for many years to come, we will continue to focus on leveraging our long-term commitment to quality, technology leadership and operational excellence to drive profitable growth and business diversification," according to Dauch.