Financial Overview

(in million USD)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	Rate of change (%)	Factors
Net Sales	3,207.3	2,930.9	9.4	1)
Operating Income	240.3	156.4	53.6	-

Factors
1) Net Sales
-Net sales increased by 9.4% to USD 3,207.3 million in 2013 as compared to USD 2,930.9 million in 2012. The Company's sales in 2013, as compared to 2012, reflect an increase in global launch activity principally related to higher production volumes for the major North American light truck programs we currently support, additional content on GM and Chrysler's next generation full-size truck programs and a 17% increase in non-GM sales.

Contracts

-The Company announced that its backlog of new and incremental business launching from 2014 through 2016 is estimated at USD 900 million in future annual sales. AAM's new and incremental business backlog includes product programs supporting the all-new Jeep Cherokee with AAM's EcoTrac Disconnecting Driveline System; the all-new Cadillac CTS with AAM's high efficiency rear drive modules; and the e-AAM hybrid and electric system that will be featured on a future model year Qoros vehicle. (From a press release on January 15, 2014)

-The Company announced the introduction of the automotive industry's first disconnecting all-wheel-drive (AWD) system. EcoTrac on the all-new 2014 Jeep Cherokee. AAM's EcoTrac Disconnecting All Wheel Drive is a new approach to minimizing the effect of inertia and drag on a vehicle's driveline system by disconnecting many of the rotating components from the driveline when they are not needed. EcoTrac is being manufactured at AAM's Three Rivers Manufacturing Facility in Three Rivers, Michigan, USA. In support of this new program, AAM has invested more than USD 100 million in the facility and has hired more than 550 new associates in 2013.  (From a press release on December 19, 2013)

-The Company has won a new driveline systems contract featuring e-AAM technology for Qoros Auto Co., Ltd. (Qoros). Qoros, an automotive manufacturing company headquartered in Shanghai, China, and a joint venture between Chery Automobile Co., Ltd. and Israel Corporation, will feature e-AAM technology on a future model year Qoros vehicle. This vehicle will be produced in China for both the Chinese and European automotive markets. e-AAM hybrid and electric driveline systems consist of an electric drive unit, power box unit with an electric drive control module and a proprietary control strategy and software designed for traction and hybrid controls functionality. (From a press release on July 9, 2013)

 

Awards

-The Company announced its Supplier Recognition Award recipients, including:
・ AAPICO Amata Co., Ltd. received recognition for its axle-housing cost-reduction initiative.
・ Gibbs Die Casting Corporation received recognition for its three-piece torque tube technology.
・ NTN Bearing Corporation received recognition for its overall customer satisfaction.
(From a press release on June 20, 2013)

-The Company announced that it has received the 2012 Supplier Award for Best Powertrain by Beijing Benz Automotive Company (BBAC). AAM Asia operations manufacture independent rear drive axles (IRDAs) with AAM's PowerLite housings and several efficient hypoid gear ratios to support multiple engine and transmission configurations. These IRDAs are featured in the Mercedes-Benz C-Class and E-Class vehicles for the region. (From a press release on June 18, 2013)

ISO Certification

-The Company announced that AAM's World Headquarters located in Detroit, Michigan, USA has earned ISO 50001 certification. This is AAM's first facility to receive this certification. (From a press release on January 24, 2014)

R&D Expenditure

(in million USD)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011
Overall	103.4	123.4	113.6

R&D Facilities

-The Company has technical centers in Auburn Hills and Rochester Hills, Michigan.

R&D Activities

-In 2013, the focus of the R&D investment is on developing innovative driveline and drivetrain systems and related components for light trucks, passenger cars, SUVs, crossover vehicles and commercial vehicles in the global marketplace.

-The Company continues to focus on electronic integration in its products to advance their performance. The Company also continues to support the development of hybrid and electric vehicle systems. Special focus is also placed on the development of products and systems that provide customers with advancements in fuel efficiency and emissions reduction and improved performance metrics such as noise vibration harshness (NVH) and power density.

Capital Expenditure

(in million USD)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011
Overall	251.9	207.6	163.1

-In 2013, the capital spending primarily supported the Company's significant global program launches within its new and incremental business backlog.

Investment in U.S.A.

-The Company announced that it is investing more than 100 million USD in its Three Rivers Manufacturing Facility located in Three Rivers, Michigan, USA. The investment, which will be completed by December 2013, is expected to create more than 500 new jobs. The investment represents the installation of new production lines, multiple assembly stations, paint line modifications and additional shipping and receiving capacity, and others. In 2012 alone, AAM invested more than 50 million USD and created nearly 300 new jobs in the State of Michigan. Anchored by its global headquarters in the City of Detroit, AAM operates a total of seven facilities in Michigan. (From a press release on February 1, 2013)