DETROIT, Aug. 14 /PRNewswire-FirstCall/ -- American Axle &
Manufacturing Holdings, Inc. (AAM), which is traded as AXL on the NYSE,
today announced it will offer a voluntary separation program to all hourly
associates represented by the United Automobile, Aerospace and Agricultural
Implement Workers of America (UAW) at its Buffalo Gear, Axle & Linkage
facility in Buffalo, New York.
The program will begin in September 2007 and is related to AAM's
previously announced plans to idle a portion of its U.S. production
capacity dedicated to the mid-sized light truck product range.
Under the Buffalo Separation Program (BSP), AAM will offer a range of
early retirement incentives and buy-outs to approximately 650 eligible
hourly associates. These offers include:
-- A monthly incentive for associates eligible to grow into retirement
within four years;
-- $50,000 incentive to retirement eligible associates;
-- $70,000 buy-out incentive to associates with less than 10 years
seniority;
-- $100,000 buy-out incentive to associates with greater than or equal to
10 years seniority;
-- An early retirement program for associates with greater than or equal
to 10 years of service and greater than or equal to 50 but less than 65
years of age.
Associates who retire as part of the BSP will retain all vested pension
and other postretirement benefits. Associates who accept a buy-out will
retain vested pension benefits but will forfeit other postretirement
benefits.
AAM currently expects to incur special charges of as much as $85
million for the BSP, including pension and other postretirement benefit
curtailments and special termination benefits. As a result of the
uncertainty related to acceptance rates and the amount of pension and other
postretirement benefit charges related to this voluntary program, AAM
withdraws its 2007 earnings and cash flow guidance.
AAM is a world leader in the manufacture, engineering, design and
validation of driveline and drivetrain systems and related components and
modules, chassis systems and metal-formed products for light trucks, sport
utility vehicles and passenger cars. In addition to locations in the United
States (in Michigan, New York and Ohio), AAM also has offices or facilities
in Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland, South
Korea and the United Kingdom.
Certain statements contained in this press release are "forward-looking
statements" and relate to the Company's plans, projections, strategies or
future performance. Such statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995 and are
based on our current expectations, are inherently uncertain, are subject to
risks and should be viewed with caution. Actual results and experience may
differ materially from the forward-looking statements as a result of many
factors, including but not limited to: adverse changes in the economic
conditions or political stability of our principal markets (particularly
North America, Europe and South America); reduced demand of our customers'
products or volume reductions, particularly for light trucks and SUVs
produced by GM and Chrysler LLC's heavy-duty Dodge Ram full-size pickup
trucks, or the Dodge Ram program; work stoppages at GM or Chrysler LLC or a
key supplier to GM or Chrysler LLC; our ability to achieve cost reductions
through accelerated attrition programs; reduced purchases of our products
by GM, Chrysler LLC or other customers; our ability and our customers'
ability to successfully launch new product programs; our ability to respond
to changes in technology or increased competition; supply shortages or
price fluctuations in raw materials, utilities or other operating supplies;
our ability to maintain satisfactory labor relations and avoid work
stoppages; risks of noncompliance with environmental regulations or risks
of environmental issues that could result in unforeseen costs at our
facilities; liabilities arising from legal proceedings to which we are or
may become a party or claims against us or our products; availability of
financing for working capital, capital expenditures, research and
development or other general corporate purposes, including our ability to
comply with financial covenants; adverse changes in laws, government
regulations or market conditions affecting our products or our customers'
products (including the Corporate Average Fuel Economy regulations); our
ability to attract and retain key associates; and other unanticipated
events and conditions that may hinder our ability to compete. For
additional discussion, see "Item 1A. Risk Factors" in our most recent
annual report on Form 10-K and quarterly reports on Form 10-Q. It is not
possible to foresee or identify all such factors and we assume no
obligation to update any forward-looking statements or to disclose any
subsequent facts, events or circumstances that may affect their accuracy.
For more information...
Media relations contact Investor relations contact
Renee B. Rogers Jamie M. Little
Manager, Corporate Communications Director, Investor Relations
and Media Relations (313) 758-4831
(313) 758-4882 jamie.little@aam.com
renee.rogers@aam.com
Or visit the AAM website at http://www.aam.com.
SOURCE American Axle & Manufacturing Holdings, Inc.
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Related links:
http://www.aam.com/
http://www.prnewswire.com/comp/033813.html /
CONTACT:
Media relations, Renee B. Rogers, Manager,
Corporate Communications, +1-313-758-4882, renee.rogers@aam.com,
or Investor relations, Jamie M. Little, Director, Investor
Relations and Media Relations, +1-313-758-4831,
jamie.little@aam.com
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