Here’s Dauch and company talking about the future to investors

[wthom...@aol.com]

 

Here’s Dauch and company talking about the future to investors:

http://seekingalpha.com/article/87136-american-axle-amp-manufacturing-holdings-inc-q2-2008-earnings-call-transcript

The UAW must develop closer relations with unions in other countries so we can cooperate on bringing everyone’s standards up. It is fundamental that in negotiations with MSP next year and Colfor the following year, that their expiration date be made to be=2 0the same time as ours and the same goes for the Oxford non-union plant when they become organized and negotiate a contract.

I pulled some stuff out, see below:

“As we reduce the size of our US manufacturing operation, we will expand AAM's global installed capacity by approximately 150%. This includes the construction of two new facilities in the country of India, and one new facility in the country of Thailand. We will also continue to expand AAM's existing facilities in the countries of Brazil, China, Mexico, and Poland…

Business in addition to the replacement business for substantially all of the major North American light truck programs we currently support and enjoy with General Motors and Chrysler LLC. This is a powerful foundation for AAM's future profitable growth and will be that way for many years to come. At this point is the expansion of AAM's product portfolio and global footprint is quickly enhancing AAM's business diversification and the OEMs are very anxious to have us work with them throughout the world. AAM is currently working on 12 different passenger car and crossover vehicle programs as I indicated on a global basis with five different major OEM world customers…

Our company is successfully dev eloping new customer relationships with Volkswagen, (inaudible) and their major division Audi along with Renault, Nissan, Tata, Mahindra, Cherry, Veyron as well as others. All this will add more balance to our revenue stream and better global diversification…

And we suspected we might see some fall off in four wheel drive, all wheel drive orders due to fuel efficiency concerns, that has not been the case so far this year…

The potential to raise cash and sharpen our focus by selling two or three businesses that are not a core part of our long-term plan. This includes our stabilizer bar business, and our linkage business. We also are reviewing the possibility of selling excess land, equipment and facilities to raise cash…

So, this activity currently is dominated by our operations in Mexico, and that is a very positive force as I mentioned earlier today and our financial performance has been and will continue to be and now that we're making transitions in the U.S. and as we take additional actions to support the growth of our business in places like India, China, Brazil by locating right from the start of the right market cost competitive locations, these are all reasons why we feel very good about our future…

We have many different plans and potential plans in=2 0place to grow and improve our business in the US…

in our new business backlog, we have approximately half of that or $700 million lined up for 12 different passenger car crossover vehicle product programs. These are all wheel drive systems. These are products that include rear drive modules, power transfer units, multi-piece drive shafts, a very nice expansion of our product portfolio (inaudible) adding a lot of diversity and balance to our revenue stream so a good chunk of that is the 700 million. We also have some on the light truck side we have a significant concentration of global, not U.S. but global light truck program, these are end-user market outside North America, approximately half of that backlog of $700 million will launch outside the US…

In that light truck area we got not just rear axle and front axle, but also transfer cases that we see as a very important part of our future, as we deliver complete drive line systems to our customers. We also have some orders on the light commercial vehicle side and maybe moving up the food chain a little bit, one of our core competencies of course, rear beam axles, we see that rear beam axle demand requirement moving up the food chain a little bit in terms of commercial vehicle and so we'll be participating in that, the order with Mahindra (inaudible) joint venture in India, very important part of that...

many opportunities to expand particularly in the areas of passenger car, crossover vehicles, light commercial vehicle and commercial vehicle segment”

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