American Axle & Manufacturing Holdings (AAM) SWOT and PESTLE Analysis
COMPANY PROFILE -American Axle & Manufacturing Holdings (AAM)
Business Sector :Auto Ancillary
Operating Geography :United States, North America, Global
About American Axle & Manufacturing Holdings (AAM) :
American Axle & Manufacturing Holdings, Inc. (AAM) is an American company that specializes in the design, engineering, and manufacturing of driveline and drivetrain systems for a variety of vehicles. The company was founded in 1994 and is headquartered in Detroit, Michigan. AAM's products are used in a range of vehicles, including cars, trucks, SUVs, and commercial vehicles. The company's main product lines include axles, driveshafts, power transfer units, and other driveline components. AAM's customers include many of the major global automakers, such as Ford, General Motors, and Fiat Chrysler Automobiles. The company operates manufacturing facilities in the United States, Mexico, Brazil, and Poland. AAM also has engineering and sales offices located around the world. The company is committed to developing innovative solutions to improve vehicle performance, reduce emissions, and enhance safety. In recent years, AAM has been working to expand its product offerings and increase its global footprint through strategic acquisitions and partnerships. In 2017, the company acquired Metaldyne Performance Group, a leading producer of powertrain and suspension components, which significantly expanded AAM's capabilities. AAM has also formed partnerships with other companies to develop new technologies and expand its customer base. As of early 2023, AAM had approximately 25,000 employees and reported annual revenues of $5.5 billion. The company is publicly traded on the New York Stock Exchange under the ticker symbol "AXL."
The USP of AAM lies in it being one of the largest American companies in automobile industry. The mission of American Axle & Manufacturing is to POWER a more sustainable future while providing value to our stakeholders.
American Axle & Manufacturing Holdings (AAM) Revenue :
US$ 5,156.6 million - FY ending 31st December 2021 (y-o-y growth 9.46%)
US$ 4,710.8 million - FY ending 31st December 2020
Competitive Analysis of American Axle & Manufacturing Holdings (AAM)
Strengths | Weaknesses |
1. Successful track record of integrating with firms through mergers & acquisitions 2. Delivering operational excellence through established best practices 3. Diversification of customer, product, and geographic sales mix 4. AAM's focused investments in R&D and future technologies 5. High quality standards delivering durable and reliable products 6. Strong set of Electrification Engineering Capabilities 7. Global-leader in design, engineering and manufacturing of automotive propulsion systems and technologies to support electric, hybrid and ICE vehicles | 1. Negotiating power of customers is extreme and can impact price leadership 2. Business is significantly dependent on sales to GM, Stellantis & Ford accounting for 65% of Revenue |
Opportunities | Threats |
1. Opportunity to expand in electronic vehicles’ battery sector 2. Investments to leverage access to mobility opportunities 3. Contracts awarded to AAM will generate revenue opportunities | 1. Supply chain disruption impact operations 2. The cyclical nature of the automobile and automotive industry can adversely affect operations 3. Direct and indirect effect of COVID-19 on production 4. Highly competitive landscape with players like Autoliv, Linamar, Valeo, General Motors, and Snap-on Tools |
Complete Report
USD 27
- Debit/Credit card
- PayPal
Detailed SWOT Analysis of American Axle & Manufacturing Holdings (AAM)
Strength
1. Successful track record of integrating complimentary firms through mergers & acquisitions: AAM has completed 7 Mergers and Acquisitions deals to date and has successfully seen growth with the firms. In 2016, the Acquisition of tier 1 automobile company MPG was completed. The acquisition of MPG meets AAM’s strategic and financial criteria for disciplined capital allocation. In April 2022, an agreement to acquire Germany-based Tekfor Group for an enterprise value of approximately $136 million was done. Additionally, in May 2021, it agreed for a partnership with REE Automotive, a leader in e-Mobility, to develop a New Electric Propulsion System for e-Mobility. The parties want to combine AAM's next-generation electric drive units, which have fully integrated high-speed motors and inverter technology, with REE's highly disruptive REEcornerTM technology to create a fully-flat EV chassis for a variety of commercial vehicle applications.
2. Delivering operational excellence through established best practices: AAM received the 2020 GM Overdrive Award in 2021, which recognizes suppliers that demonstrate exceptional performance in key areas of GM's Global Purchasing and Supply Chain organization, such as sustainable value streams, total enterprise cost and profitability, launch excellence, accelerating innovation, and nurturing relationships. The company achieves operational excellence by leveraging its Operating System, utilizing standardized best practices across all disciplines to prioritize customer satisfaction, lean manufacturing, and cost management. This approach enables AAM to improve quality, reduce waste, decrease lead times, and lower costs globally. Moreover, in 2021, AAM has sustained its focus on managing costs to counterbalance the financial effects of the major supply chain disruptions faced by the automotive sector. Such disruptions include a scarcity of semiconductor chips needed by its customers, an escalation in metal and commodity expenses, and labor shortages that have caused fluctuations in production schedules, amplified inventory levels, and raised labor costs.
The remaining section under "Strength" is available only in the 'Complete Report' on purchase.
Weakness
This section is available only in the 'Complete Report' on purchase.
Opportunity
This section is available only in the 'Complete Report' on purchase.
Threat
This section is available only in the 'Complete Report' on purchase.
Major Competitors :
- Autoliv
- Valeo
- General Motors
- Snap-on Tools
Complete Report
USD 27
- Debit/Credit card
- PayPal
TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
You may also be interested in other analyses of American Axle & Manufacturing Holdings (AAM):
-
American Axle & Manufacturing Holdings (AAM) Porter's Five Forces Analysis -
American Axle & Manufacturing Holdings (AAM) VRIO Analysis -
American Axle & Manufacturing Holdings (AAM) Value Chain Analysis -
American Axle & Manufacturing Holdings (AAM) Covid-19 Impact Analysis -
American Axle & Manufacturing Holdings (AAM) BCG Analysis -
American Axle & Manufacturing Holdings (AAM) Segmentation, Targeting and Positioning (STP) Analysis -
American Axle & Manufacturing Holdings (AAM) Ansoff Matrix Analysis
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Check Out Analysis of Other Relevant Companies
References used in American Axle & Manufacturing Holdings (AAM) SWOT & PESTLE Analysis Report
1. Detroit’s American Axle Acquires EV Components Firm for $136M - https://www.dbusiness.com/daily-news/detroits-american-axle-acquires-ev-components-firm-for-136m/
2. AAM Announces Acquisition of MPG - https://www.aam.com/media/story/aam-announces-acquisition-of-mpg
3. WHAT IS 3D PRINTING? - TECHNOLOGY DEFINITION AND TYPES - https://www.twi-global.com/technical-knowledge/faqs/what-is-3d-printing
4. Annual Report - https://www.aam.com/docs/default-source/annual-reports/axl-annual-report-2021.pdf?sfvrsn=de0ae832_4 (
The detailed complete set of references are available on request in the 'Complete report' on purchase.
How to Reference This Page?
You can use the following in your reference section in order to give credit to the source. For different referencing styles and detailed guidelines, please click here.
American Axle & Manufacturing Holdings (AAM) SWOT and PESTLE Analysis - SWOT & PESTLE.COM
SWOT & PESTLE.com (2024). American Axle & Manufacturing Holdings (AAM) SWOT and PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/american-axle/ [Accessed 06 Dec, 2024].
In-text: (SWOT & PESTLE.com, 2024)
Copyrights and Disclaimer
American Axle & Manufacturing Holdings, Inc. (AAM) SWOT and PESTLE analysis has been conducted and reviewed by senior analysts from Barakaat Consulting.
Copyright of American Axle & Manufacturing Holdings, Inc. (AAM) SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.