American Axle & Manufacturing, Inc. (AAM) (NYSE: AXL), headquartered in Detroit, Michigan, is a manufacturer of automobile driveline and drivetrain components and systems.
AAM was founded in 1994 when a private investor group, led by Richard E. "Dick" Dauch and James W. McLernon, purchased the Final Drive and Forge Business Unit from GM's Saginaw Division. In 1999, AAM went public, and is traded as "AXL" on the New York Stock Exchange (NYSE). AAM has grown to supply various OEM manufacturers around the globe in the passenger car, light truck, and commercial vehicle segments.
AAM's World Headquarters building, erected in 2004, is located on the Detroit/Hamtramck border.
American Axle & Manufacturing Holdings, Inc. (AAM) 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. The Company’s driveline, drivetrain and related products include axles, chassis modules, driveshafts, power transfer units, transfer cases, chassis and steering components, driveheads, crankshafts, transmission parts and metal-formed products. During the year ended December 31, 2010, AAM entered into a joint venture with Saab Automobile AB (Saab), in which the new company, e-AAM, engineers and develops eAWD hybrid driveline systems to be commercialized for passenger cars and crossover vehicles.
AAM is a supplier of driveline components to General Motors Company (GM) for its rear-wheel drive (RWD) light trucks and SUVs manufactured in North America, supplying all of GM's rear axle and front four-wheel drive and all-wheel drive (4WD/AWD) axle requirements for these vehicle platforms. During 2010, sales to GM were approximately 75% of its total net revenue. As of December 31, 2010, the Company operated in 13 countries and has 33 manufacturing, engineering and business office facilities worldwide.
The Company is a supplier of driveline system products for Chrysler Group LLC's (Chrysler) heavy-duty Dodge Ram full-size pickup trucks (Dodge Ram program) and its derivatives. During 2010, sales to Chrysler were approximately 9% of its total net revenue. In addition to GM and Chrysler, AAM supplies driveline systems and other related components to Volkswagen AG (Volkswagen), Scania AB, PACCAR Inc., Harley-Davidson Inc., Deere & Company, Tata Motors, Mack Trucks Inc. (Mack Truck), Ford Motor Company (Ford), and other original equipment manufacturers (OEMs) and Tier I supplier companies.
The Company competes with ArvinMeritor, Dana Holding Corporation, GKN plc, Magna International Inc., ZF Friedrichshafen AG., Chrysler and Ford.
Investments in new technology underpinned the company's progress during the first years of the new decade. By 2002, three-quarters of the products AAM was supplying had been developed within the previous three years, putting Dauch's offerings on the technological vanguard. At this point, the company was supplying the driveline systems for the long-wheelbase versions of the Chevrolet TrailBlazer and GMC Envoy sport utility vehicles, the Hummer H2, and the heavy-duty version of the 2003 Dodge Ram pickup truck. The company received a new contract to supply GM with a new driveline system in 2006, a deal of tremendous importance to its future business. The contract, which potentially was worth more than $1.5 billion annually, was hailed by Dauch. "This is the largest driveline-system award program by any vehicle manufacturer in the world," he explained in a May 20, 2002 interview with Crain's Detroit Business. "It will secure our revenue (from 2006) through 2015 with this one program," he added. Revenues at the end of the year reached a record high of $3.5 billion, and the company's net income, after increasing 53 percent, reached a record high of $176 million.
As AAM entered the mid-2000s, it continued to register significant improvements in its manufacturing methods. The number of defects per million parts shipped to GM, which stood at 13,441 in 1994 before being whittled down to 89 in 2000, was only 15 by the end of 2003. The company was producing 19,300 axles per day by this point, nearly twice the daily production average in 1994. New-technology-related sales represented only 3 percent of the company's business when Dauch took control of its factories. By the end of 2003, AAM derived 80 percent of its revenue from products featuring new technology. The influence of Dauch on the company's operations was immense, representing more than a restoration of the facilities formerly owned by GM. Dauch reinvented the business, creating an automotive supplier that ranked as the most profitable enterprise in its industry. As the company plotted its course, its future success rested almost as heavily on the presence of Dauch as it did on the business supplied by GM.
AAM dedicated its new headquarters facility in mid-2004, a seven-story, 250,000-square-foot, $40-million building that promised to be the focal point of the company's future success. The dedication occurred during the company's 10th anniversary, an occasion marked by Dauch in a July 23, 2004 AAM press release. "When this company was formed in 1994," he wrote, "it was a priority for us that we locate our headquarters in the city of Detroit, the motor capital of the world. The new AAM world headquarters tops off more than 10 years of improvements and contributions that we have made in the community. It is a true capstone for our corporation. Now, we have all our functional capabilities under one roof, for the first time in AAM's history."
Principal Subsidiaries: American Axle & Manufacturing, Inc.; AAM Receivables Corp.; American Axle International Sales, Ltd.; Colfer Manufacturing Inc.; MASP Industries Corporation; MSP Team, LLC (99%); American Axle & Manufacturing de Mexico Holdings S. de R.L. de C.V. (99.99%); Guanajuato Gear & Axle de Mexico S. de R.L. de C.V. (99.99%); American Axle & Manufacturing de Mexico S.A. de C.V. (99.99%); AAM International Holdings, Inc.; Albion Automotive (Holdings) Limited (Scotland); Albion Automotive Limited (Scotland); Farington Components Limited (U.K.); AAM Comercio e Participacoes Ltda. (99.99%); AAM do Brasil Ltda. (Brazil).
Principal Competitors: ArvinMeritor, Inc.; Dana Corporation; Metaldyne Corporation.
OVERALL
Beta: 2.42
Market Cap (Mil.): $948.80
Shares Outstanding (Mil.): 75.30
Annual Dividend: --
Yield (%): --
FINANCIALS
AXL Industry Sector
P/E (TTM): 8.13 6.49 9.39
EPS (TTM): 133.38 -- --
ROI: 7.45 0.53 0.84
ROE: -- 0.73 1.53
Statistics:
Public Company
Incorporated: 1994 as American Axle & Manufacturing of Michigan, Inc.
Employees: 11,800
Sales: $3.68 billion (2003)
Stock Exchanges: New York
Ticker Symbol: AXL
NAIC: 336399 All Other Motor Vehicle Parts and Accessories; 551112 Offices of Other Holding Companies
Key Dates:
1994: An investor group led by Richard Dauch acquires General Motors' Final Drive and Forge Business Unit, leading to the formation of AAM.
1997: Blackstone Capital Partners acquires a controlling stake in AAM.
1999: AAM completes its initial public offering of stock.
2002: AAM is awarded a contract with General Motors worth $1.5 billion annually.
2004: AAM dedicates a new world headquarters building in Detroit.
Name Age Since Current Position
Dauch, Richard 68 2000 Chairman of the Board, Chief Executive Officer
Dauch, David 46 2009 President, Chief Operating Officer, Director
Simonte, Michael 47 2009 Chief Financial Officer, Executive Vice President - Finance
Bellanti, John 56 2008 Executive Vice President - Worldwide Operations
Moriguchi, Inacio 51 2010 Vice President - Operations, AAM Americas
Monich, Allan 57 2010 Vice President - Quality, Warranty and Customer Satisfaction
Proctor, Steven 54 2008 President, AAM Asia and Vice President - AAM Corporate
Jerge, John 49 2010 President, AAM Americas, Vice President - AAM Corporate
Sofia, John 50 2008 Vice President - Commercial Vehicle Business
Smith, Kevin 49 2010 Vice President - Program Management & Launch
Willemse, Norman 54 2008 Vice President - Global Metal Formed Product Business Unit
Barrett, Mark 50 2008 Vice President - Engineering and Product Development
Culton, David 45 2010 President, AAM Europe, Vice President - AAM Corporate
Szymanski, Thomas 49 2010 Vice President - Global Manufacturing Services
Satine, Alberto 54 2005 Vice President - Strategic & Business Development
Walker, Thomas 70 2010 Lead Independent Director
Farmer, Forest 70 1999 Independent Director
Lappin, Richard 66 1999 Independent Director
Yang, Henry 70 2004 Independent Director
Switzer, Larry 67 2005 Independent Director
Chappell, Elizabeth 53 2004 Independent Director
Miller, William 55 2005 Independent Director
Bonanno, Salvatore 70 2009 Independent Director
McCaslin, James 62 2011 Independent Director
Address:
1840 Holbrook Avenue
Detroit, Michigan 48212
U.S.A.
AAM was founded in 1994 when a private investor group, led by Richard E. "Dick" Dauch and James W. McLernon, purchased the Final Drive and Forge Business Unit from GM's Saginaw Division. In 1999, AAM went public, and is traded as "AXL" on the New York Stock Exchange (NYSE). AAM has grown to supply various OEM manufacturers around the globe in the passenger car, light truck, and commercial vehicle segments.
AAM's World Headquarters building, erected in 2004, is located on the Detroit/Hamtramck border.
American Axle & Manufacturing Holdings, Inc. (AAM) 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. The Company’s driveline, drivetrain and related products include axles, chassis modules, driveshafts, power transfer units, transfer cases, chassis and steering components, driveheads, crankshafts, transmission parts and metal-formed products. During the year ended December 31, 2010, AAM entered into a joint venture with Saab Automobile AB (Saab), in which the new company, e-AAM, engineers and develops eAWD hybrid driveline systems to be commercialized for passenger cars and crossover vehicles.
AAM is a supplier of driveline components to General Motors Company (GM) for its rear-wheel drive (RWD) light trucks and SUVs manufactured in North America, supplying all of GM's rear axle and front four-wheel drive and all-wheel drive (4WD/AWD) axle requirements for these vehicle platforms. During 2010, sales to GM were approximately 75% of its total net revenue. As of December 31, 2010, the Company operated in 13 countries and has 33 manufacturing, engineering and business office facilities worldwide.
The Company is a supplier of driveline system products for Chrysler Group LLC's (Chrysler) heavy-duty Dodge Ram full-size pickup trucks (Dodge Ram program) and its derivatives. During 2010, sales to Chrysler were approximately 9% of its total net revenue. In addition to GM and Chrysler, AAM supplies driveline systems and other related components to Volkswagen AG (Volkswagen), Scania AB, PACCAR Inc., Harley-Davidson Inc., Deere & Company, Tata Motors, Mack Trucks Inc. (Mack Truck), Ford Motor Company (Ford), and other original equipment manufacturers (OEMs) and Tier I supplier companies.
The Company competes with ArvinMeritor, Dana Holding Corporation, GKN plc, Magna International Inc., ZF Friedrichshafen AG., Chrysler and Ford.
Investments in new technology underpinned the company's progress during the first years of the new decade. By 2002, three-quarters of the products AAM was supplying had been developed within the previous three years, putting Dauch's offerings on the technological vanguard. At this point, the company was supplying the driveline systems for the long-wheelbase versions of the Chevrolet TrailBlazer and GMC Envoy sport utility vehicles, the Hummer H2, and the heavy-duty version of the 2003 Dodge Ram pickup truck. The company received a new contract to supply GM with a new driveline system in 2006, a deal of tremendous importance to its future business. The contract, which potentially was worth more than $1.5 billion annually, was hailed by Dauch. "This is the largest driveline-system award program by any vehicle manufacturer in the world," he explained in a May 20, 2002 interview with Crain's Detroit Business. "It will secure our revenue (from 2006) through 2015 with this one program," he added. Revenues at the end of the year reached a record high of $3.5 billion, and the company's net income, after increasing 53 percent, reached a record high of $176 million.
As AAM entered the mid-2000s, it continued to register significant improvements in its manufacturing methods. The number of defects per million parts shipped to GM, which stood at 13,441 in 1994 before being whittled down to 89 in 2000, was only 15 by the end of 2003. The company was producing 19,300 axles per day by this point, nearly twice the daily production average in 1994. New-technology-related sales represented only 3 percent of the company's business when Dauch took control of its factories. By the end of 2003, AAM derived 80 percent of its revenue from products featuring new technology. The influence of Dauch on the company's operations was immense, representing more than a restoration of the facilities formerly owned by GM. Dauch reinvented the business, creating an automotive supplier that ranked as the most profitable enterprise in its industry. As the company plotted its course, its future success rested almost as heavily on the presence of Dauch as it did on the business supplied by GM.
AAM dedicated its new headquarters facility in mid-2004, a seven-story, 250,000-square-foot, $40-million building that promised to be the focal point of the company's future success. The dedication occurred during the company's 10th anniversary, an occasion marked by Dauch in a July 23, 2004 AAM press release. "When this company was formed in 1994," he wrote, "it was a priority for us that we locate our headquarters in the city of Detroit, the motor capital of the world. The new AAM world headquarters tops off more than 10 years of improvements and contributions that we have made in the community. It is a true capstone for our corporation. Now, we have all our functional capabilities under one roof, for the first time in AAM's history."
Principal Subsidiaries: American Axle & Manufacturing, Inc.; AAM Receivables Corp.; American Axle International Sales, Ltd.; Colfer Manufacturing Inc.; MASP Industries Corporation; MSP Team, LLC (99%); American Axle & Manufacturing de Mexico Holdings S. de R.L. de C.V. (99.99%); Guanajuato Gear & Axle de Mexico S. de R.L. de C.V. (99.99%); American Axle & Manufacturing de Mexico S.A. de C.V. (99.99%); AAM International Holdings, Inc.; Albion Automotive (Holdings) Limited (Scotland); Albion Automotive Limited (Scotland); Farington Components Limited (U.K.); AAM Comercio e Participacoes Ltda. (99.99%); AAM do Brasil Ltda. (Brazil).
Principal Competitors: ArvinMeritor, Inc.; Dana Corporation; Metaldyne Corporation.
OVERALL
Beta: 2.42
Market Cap (Mil.): $948.80
Shares Outstanding (Mil.): 75.30
Annual Dividend: --
Yield (%): --
FINANCIALS
AXL Industry Sector
P/E (TTM): 8.13 6.49 9.39
EPS (TTM): 133.38 -- --
ROI: 7.45 0.53 0.84
ROE: -- 0.73 1.53
Statistics:
Public Company
Incorporated: 1994 as American Axle & Manufacturing of Michigan, Inc.
Employees: 11,800
Sales: $3.68 billion (2003)
Stock Exchanges: New York
Ticker Symbol: AXL
NAIC: 336399 All Other Motor Vehicle Parts and Accessories; 551112 Offices of Other Holding Companies
Key Dates:
1994: An investor group led by Richard Dauch acquires General Motors' Final Drive and Forge Business Unit, leading to the formation of AAM.
1997: Blackstone Capital Partners acquires a controlling stake in AAM.
1999: AAM completes its initial public offering of stock.
2002: AAM is awarded a contract with General Motors worth $1.5 billion annually.
2004: AAM dedicates a new world headquarters building in Detroit.
Name Age Since Current Position
Dauch, Richard 68 2000 Chairman of the Board, Chief Executive Officer
Dauch, David 46 2009 President, Chief Operating Officer, Director
Simonte, Michael 47 2009 Chief Financial Officer, Executive Vice President - Finance
Bellanti, John 56 2008 Executive Vice President - Worldwide Operations
Moriguchi, Inacio 51 2010 Vice President - Operations, AAM Americas
Monich, Allan 57 2010 Vice President - Quality, Warranty and Customer Satisfaction
Proctor, Steven 54 2008 President, AAM Asia and Vice President - AAM Corporate
Jerge, John 49 2010 President, AAM Americas, Vice President - AAM Corporate
Sofia, John 50 2008 Vice President - Commercial Vehicle Business
Smith, Kevin 49 2010 Vice President - Program Management & Launch
Willemse, Norman 54 2008 Vice President - Global Metal Formed Product Business Unit
Barrett, Mark 50 2008 Vice President - Engineering and Product Development
Culton, David 45 2010 President, AAM Europe, Vice President - AAM Corporate
Szymanski, Thomas 49 2010 Vice President - Global Manufacturing Services
Satine, Alberto 54 2005 Vice President - Strategic & Business Development
Walker, Thomas 70 2010 Lead Independent Director
Farmer, Forest 70 1999 Independent Director
Lappin, Richard 66 1999 Independent Director
Yang, Henry 70 2004 Independent Director
Switzer, Larry 67 2005 Independent Director
Chappell, Elizabeth 53 2004 Independent Director
Miller, William 55 2005 Independent Director
Bonanno, Salvatore 70 2009 Independent Director
McCaslin, James 62 2011 Independent Director
Address:
1840 Holbrook Avenue
Detroit, Michigan 48212
U.S.A.