DETROIT, Oct. 4 /PRNewswire-FirstCall/ -- American Axle & Manufacturing
Holdings, Inc. (AAM), which is traded as AXL on the NYSE, today announced
that it will offer a special attrition program to all UAW associates at
AAM's master agreement facilities in the fourth quarter of 2006.
"The unprecedented, yet necessary, structural transformation of the
domestic automotive industry is continuing at a rapid pace," said AAM
Co-Founder, Chairman, & CEO Richard E. Dauch. "AAM's special attrition
program is necessary at this time to realign our workforce with actual and
projected production and market conditions. The structural cost reductions
anticipated as a result of this special attrition program will enhance our
ability to invest in the continuing expansion of AAM's product portfolio,
served markets, customer base and global manufacturing footprint."
AAM's special attrition program will be offered to all UAW associates
at AAM's master agreement facilities. AAM's master agreement facilities are
located in Detroit, Michigan; Three Rivers, Michigan; Buffalo, New York;
Tonawanda, New York; and Cheektowaga, New York.
Under this special attrition program, AAM will offer a range of early
retirement incentives, buy-outs and educational opportunities to its
associates. These offers include:
* $50,000 incentive to retirement eligible associates,
* A monthly incentive for associates eligible to grow into retirement
within four years,
* $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,
* $30,000 buy-out incentive to certain associates of the Cheektowaga
facility and the axle operations at the Three Rivers facility; or
* An educational opportunities buy-out incentive program providing
benefits of two or four years for tuition and living expenses.
Associates who retire as part of this program will retain all vested
pension and postretirement benefits. Associates who accept a buy-out will
retain vested pension benefits but will forfeit other postretirement
benefits.
In conjunction with this special attrition program, AAM expects to
initiate additional restructuring actions in 2006 to realign its production
capacity and cost structure to current and projected operational and market
requirements. These actions are expected to include salaried workforce
reductions, the redeployment of machinery and equipment to support new
programs, and other steps to rationalize underutilized capacity.
AAM currently expects to incur special charges of as much as $150 -
$250 million for the special attrition program and other restructuring
activities in 2006. As a result of these anticipated special charges, AAM
withdraws its 2006 earnings and cash flow guidance provided on June 8,
2006.
AAM will hold a briefing with institutional investors and security
analysts, news media representatives and other interested parties at 10:00
a.m. EDT on Wednesday, October 4, 2006 to discuss the special attrition
program. AAM's Co-Founder, Chairman & CEO Richard E. Dauch and Vice
President - Finance & CFO Michael K. Simonte will co-host the call. This
briefing may be accessed via conference call or webcast. Interested
participants may listen to the live conference call by logging onto AAM's
investor web site at http://investor.aam.com or calling (877) 278-1452 from
the United States or (706) 643-3736 from outside the United States. A
replay will be available from Noon EDT on October 4, 2006 until 5:00 p.m.
EDT October 11, 2006 by dialing (800) 642-1687 from the United States or
(706) 645-9291 from outside the United States. When prompted, callers
should enter conference reservation number 7368589.
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 DaimlerChrysler's heavy-duty Dodge Ram full-size pickup
trucks, or the Dodge Ram program; work stoppages at GM or DaimlerChrysler
or a key supplier to GM or DaimlerChrysler; reduced purchases of our
products by GM, DaimlerChrysler 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;
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 2005 Annual Report on Form 10-K. 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
Carrie L. P. Gray Christopher M. Son
Director, Corporate Relations Director, Investor Relations
(313) 758-4880 (313) 758-4814
grayc@aam.com chris.son@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: Carrie L. P. Gray, Director,
Corporate Relations, +1-313-758-4880, grayc@aam.com , Investor
relations: Christopher M. Son, Director, Investor Relations,
+1-313-758-4814, chris.son@aam.com , both of American Axle &
Manufacturing Holdings, Inc.
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