Full Description

American Axle & Manufacturing Holdings, Inc. (AAM) is a Tier I supplier to the automotive industry. The Company manufactures, engineers, designs and validates driveline and drivetrain systems, and related components and chassis modules for light trucks, sport utility vehicles (SUVs), passenger cars, crossover vehicles and commercial vehicles. Driveline and drivetrain systems include components that transfer power from the transmission and deliver it to the drive wheels. Its driveline, drivetrain and related products include axles, chassis modules, driveshafts, power transfer units, transfer cases, chassis and steering components, driving heads, crankshafts, transmission parts and metal-formed products. In December 2008, AAM announced that it has executed an asset purchase agreement with FormTech Industries LLC (FormTech). As part of this agreement, the Company exchanged its hub and spindle forging business for FormTech’s differential gear, hypoid pinion and ring gear forging businesses.

The Company is the principal supplier of driveline components to General Motors Corporation (GM) for its rear-wheel drive (RWD) light trucks and SUVs manufactured in North America, supplying substantially all of GM’s rear axle and front four-wheel drive and all-wheel drive (4WD/AWD) axle requirements for these vehicle platforms. During the year ended December 31, 2008, sales to GM was approximately 74% of its total net sales. AAM is the source supplier to GM for certain axles and other driveline products for the life of each GM vehicle program covered by a Lifetime Program Contract (LPC). Substantially all of its sales to GM are made pursuant to the LPCs. The LPCs have terms equal to the lives of the relevant vehicle programs or their respective derivatives, which typically run 6 to 10 years.

AAM is the principal supplier of driveline system products for the Chrysler Group’s heavy-duty Dodge Ram full-size pickup trucks (Dodge Ram program) and its derivatives. During 2008, sales to Chrysler LLC (Chrysler) were approximately 10% of its total net sales. In addition to GM and Chrysler, the Company supplies driveline systems and other related components to PACCAR Inc., Ford Motor Company (Ford), Harley-Davidson and other original equipment manufacturers (OEMs), and Tier I supplier companies, such as The Timken Company, Hino Motors Ltd. and Jatco Ltd. During 2008, its net sales to customers other than GM and Chrysler were approximately 16% of sales.