American Axle & Manufacturing (AXL) - 2024 Q4 - Annual Report

Sales Performance - Sales to General Motors accounted for approximately 42% of consolidated net sales in 2024, compared to 39% in 2023 and 40% in 2022[14]. - Sales to Stellantis represented about 13% of consolidated net sales in 2024, down from 16% in 2023 and 18% in 2022[15]. - Sales to Ford were approximately 13% of consolidated net sales in 2024, consistent with 12% in 2023 and 2022[16]. Business Development - AAM launched 11 programs across its business units in 2024, with expectations to launch new programs in 2025 for customers including Stellantis and Audi[21]. - AAM's Metal Forming segment is the largest automotive forging operation globally, awarded multiple internal combustion engine vehicle component programs in 2024[25]. - AAM entered into a definitive agreement to sell its commercial vehicle axle business in India for $65 million, expected to close in the first half of 2025[25]. - AAM announced new business awards in 2024 to supply Xpeng DiDi with electric drive units and e-Beam axles to Skywell, expected to launch in 2025[29]. - AAM is pursuing a cash and share offer to acquire Dowlais Group plc for approximately$1.44 billion, aimed at enhancing customer and geographic diversification[30]. Environmental Sustainability - AAM aims to achieve net-zero carbon emissions by 2040 and plans to source 100% of energy from renewable sources for U.S. operations by the end of 2025 and globally by 2035[38]. - AAM has committed to continuous improvement in environmental sustainability through its energy and environmental sustainability program, aiming to reduce energy consumption and greenhouse gas emissions[38]. - The company has not experienced any climate-related events in 2024, 2023, or 2022 that materially impacted its operations or financial condition[38]. Workforce and Diversity - AAM employs approximately 19,000 associates globally, with 6,000 in the U.S. and 13,000 in non-U.S. locations, of which about 73% of hourly associates are represented under collective bargaining agreements[39]. - The company has established a Global DEI 2+1 Program focusing on valuing differences and improving the representation of women in the workforce, with local initiatives supporting 2030 demographic goals[43]. - AAM's Associate Resource Groups (ARGs) include networks for U.S. Veterans, Black Associates, and Latin America Talent Inclusion, focusing on career and personal development[44]. - The company has established Regional DEI Steering Committees in Asia, Brazil, and Mexico to support local diversity initiatives[41]. - AAM's leadership emphasizes accountability in fostering an inclusive culture, with oversight from the Board of Directors[41]. Health and Safety - In 2024, AAM's total recordable incident rate (TRIR) was 0.7, representing a reduction of approximately 67% in recordable injuries since the S safety program began in 2015[50]. - AAM's health and wellness programs are designed to support associates and their families in achieving personal wellness goals[49]. - The company partners with local union representatives to improve safety conditions and personal development for hourly associates[47]. Community Engagement - AAM's commitment to community engagement includes support for local families, youth outreach, education, and social equality initiatives[51]. - The AAM360 program enhances associate experience through health and safety, professional development, competitive compensation, and community engagement[45].