AAM/UAW Negotiations Update -- April 10, 2008

AAM-UAW Bargaining Resumes - Current UAW economic proposal is not market cost competitive

Negotiators representing American Axle & Manufacturing, Inc. (AAM) and the UAW met at the bargaining table for the first time in over three weeks on April 9, 2008. At this meeting, the UAW presented a new economic proposal to AAM.

Although it was a slight improvement from the UAW's previous bargaining positions, the all-in labor cost proposed by the UAW is still approximately 200% of the market rate of AAM's competitors in the United States automotive supply industry.

AAM expressed disappointment over the UAW's failure to make proposals that address the competitive reality AAM and its UAW-represented associates jointly face in the U.S. driveline marketplace.

AAM needs a structural change in labor costs at its original U.S. locations that is comparable to the agreements the UAW has previously made with AAM's competitors in the United States automotive supply industry. If the UAW continues to refuse to make realistic economic proposals, AAM will be forced to consider closing these facilities.

AAM has no desire to close the original U.S. locations. AAM's preferred approach is to reach an agreement with the UAW on a new U.S. market competitive labor cost structure for these facilities. If such a market competitive agreement is accomplished, these facilities will be able to bid competitively for new business and AAM will be able to continue investing in these operations.

AAM has offered generous buy-outs for associates who do not wish to continue to work for AAM subject to a competitive wage and benefits package. AAM has also offered to make annual buy-down cash payments to associates who accept a competitive wage and benefits package. AAM's proposed buy-outs and buy-downs will provide its associates and families a financial cushion and soft landing during the transition to a new U.S. market competitive labor cost structure. These proposals are similar to those that have been successfully used by Chrysler, Ford, GM and Delphi in recent agreements with the UAW.

Negotiations are continuing. AAM remains hopeful that the International UAW will soon put forward economic and operating proposals that will allow AAM to compete on a level playing field with its competitors in the United States automotive supply industry and maintain its manufacturing operations in the original U.S. locations.

Contact: Renee Rogers of American Axle & Manufacturing, Inc., +1-313-758-4882

PRNewswire - April 10
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Source: American Axle & Manufacturing, Inc.

Web site: http://www.aam.com/

Company News On-Call: http://www.prnewswire.com/comp/033813.html

2008-04-10 19:31:39 0333567 PRNEWSWIRE