General Motors To Diversify Axle Supply for New Trucks
American Axle No Longer Exclusive Supplier
The Detroit Three automakers were highly vertically integrated for many years, with many suppliers being captive divisions or subsidiaries. Over the last several decades for various reasons, the automakers have spun off many of these divisions into independent companies such as Visteon, Delphi, and others. For many years, American Axle Manufacturing (AAM) was a primary supplier to its parent company General Motors. Following AAM’s acquisition of Metaldyne Performance Group for $3.3 billion, the company will restructure and diversify its client base, Automotive News reports. As part of the restructuring, AAM will no longer be the exclusive supplier for the next generation of GM’s fullsize trucks. However, the company is still expected to be the primary supplier, with 65 percent of the business.
Ford is expected to be a big part of AAM’s business going forward, making Dearborn the company’s third-biggest customer, after GM and Fiat Chrysler Automobiles. The company expects to expand its business in Europe, as well as Metaldyne’s core business of iron castings, which include steering knuckles, control arms, and differential cases. AAM also supplies its EcoTrac all-wheel-drive system for the KL Jeep Cherokee. AAM was spun off from General Motors in 1993. Last year, GM still accounted for 66 percent of the company’s business.
Source: Automotive News