American Axle plant
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American Axle & Manufacturing (AAM) is a Detroit-based manufacturer of driveline and metal forming components for the global automotive industry. Founded on March 1, 1994, after the acquisition of General Motors' Final Drive and Forge Business Unit, the company produces axle shafts, crankshafts, ring gears, and related drivetrain parts used in passenger cars, trucks, and SUVs. AAM is publicly traded on the New York Stock Exchange under the ticker symbol AXL and is a component of the S&P 600. Its manufacturing operations span multiple countries, though the company's roots — and one of its best-known facilities — remain in metropolitan Detroit.
History
American Axle & Manufacturing was founded on March 1, 1994, by Richard E. "Dick" Dauch and James W. McLernon, along with a group of investors, following the acquisition of General Motors' Final Drive and Forge Business Unit.[1][2] The acquisition pulled several former GM plants into a single, independent supply company focused on drivetrain manufacturing. Dauch, who had previously led manufacturing operations at Chrysler, brought an emphasis on factory-floor discipline and capital investment that shaped AAM's early identity.
The company went public on January 28, 1999, listing on the NYSE under the AXL ticker. In 2008, AAM was the target of a prolonged strike by the United Auto Workers union after contract negotiations broke down over wage cuts and benefit changes at the company's Detroit and Buffalo plants. The strike lasted roughly 87 days and resulted in a restructured labor agreement that reduced base wages for many workers.[3]
By late 2013, much of the original manufacturing plant infrastructure at several legacy facilities had been removed or idled as AAM consolidated operations and shifted work to lower-cost facilities in Mexico and other international locations.[4] These changes reflected broader restructuring across the automotive supply industry in the years following the 2008–2009 downturn.
In 2017, AAM completed the acquisition of Metaldyne Performance Group for approximately $1.6 billion, significantly expanding its product range and global manufacturing footprint.[5]
Geography
AAM's corporate headquarters are located in Detroit, Michigan, placing the company within the traditional center of U.S. automotive manufacturing.[6] One of the company's well-known Detroit-area production facilities sits on Holbrook Avenue on the city's northeast side, an area where heavy industrial use has long coexisted with residential neighborhoods.
AAM's operations extend well beyond Detroit. The company maintains manufacturing facilities and technical centers across the United States and in Mexico, Brazil, India, China, Poland, Scotland, and Germany, among other countries.[7] This international footprint allows AAM to serve regional automotive markets and reduce logistics costs for overseas customers.
Buffalo, New York facility
One of AAM's most significant legacy facilities was the former General Motors plant on East Delavan Avenue and Cornwall Avenue on Buffalo's East Side, which AAM operated after the 1994 acquisition. The plant was a major employer in a predominantly Black neighborhood on Buffalo's East Side for decades. As AAM scaled back U.S. production, the Buffalo facility was eventually closed, leaving behind substantial environmental concerns.
Reports from community groups and environmental advocates have documented contamination at and around the former plant site. Open Buffalo, a local nonprofit, has published findings showing elevated levels of lead in soil in surrounding residential areas, raising public health concerns for nearby residents.[8] The contamination has been tied historically to industrial operations at the site going back to the GM era, including reports that more than 100,000 gallons of PCBs were released and never fully remediated. Community members, including activist Bridgette Murray, have drawn attention to the health consequences for residents who live within blocks of the site. The plant closure also removed a significant source of unionized manufacturing employment from a neighborhood that had few comparable economic options.
Economy
In fiscal year 2017, American Axle & Manufacturing reported revenue of US$6.27 billion, a substantial increase from prior years that reflected both organic growth and the impact of the Metaldyne acquisition.[9] Net income for fiscal year 2017 was US$337.1 million.[10]
In fiscal year 2011, AAM reported operating income of US$223.4 million and total assets of US$2.3 billion.[11] These figures marked a recovery from the severe losses the company sustained during the 2008 UAW strike and subsequent recession. AAM is listed on the New York Stock Exchange under the ticker symbol AXL and is a component of the S&P 600.[12]
The closures and workforce reductions at AAM's Detroit and Buffalo plants in the late 2000s and early 2010s had a measurable impact on local employment. Hundreds of UAW-represented production workers lost jobs that had provided middle-class wages and benefits. The economic ripple effects were concentrated in neighborhoods — Detroit's northeast side and Buffalo's East Side — that already faced disinvestment pressures.
Products
American Axle & Manufacturing specializes in driveline and metal forming technologies for passenger vehicles, light trucks, and commercial vehicles.[13] Driveline components transmit engine power to the wheels and include axle shafts, prop shafts, differentials, and transfer cases. Metal forming operations produce structural and powertrain components through processes such as forging, machining, and heat treatment.
AAM's specific product range includes crankshafts, axle shafts, pitman arms, rod caps, tie rod sockets, side gears, and ring gears.[14] These parts appear in a wide range of vehicles, from full-size pickup trucks to passenger sedans. General Motors has historically been AAM's largest single customer, accounting for a substantial portion of annual revenue, though the company has worked to diversify its customer base since going public.
See also
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