American Axle & Manufacturing Announces a Voluntary Separation Program for Hourly Associates Represented by the UAW at AAM's Buf
August 14 2007 - 8:00AM
PR Newswire (US)
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 Or visit the AAM website at http://www.aam.com/.
DATASOURCE: American Axle & Manufacturing Holdings, Inc.
CONTACT: Media relations, Renee B. Rogers, Manager, Corporate
Communications, +1-313-758-4882, , or Investor relations, Jamie M.
Little, Director, Investor Relations and Media Relations,
+1-313-758-4831, Web site: http://www.aam.com/ Company News
On-Call: http://www.prnewswire.com/comp/033813.html
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