Gary Bourgeault
Long only, research analyst, portfolio strategy, media

As Goes GM, So Goes American Axle & Manufacturing

With General Motors (NYSE:GM) accounting for about 70 percent of the business of American Axle & Manufacturing Holdings Inc. (NYSE:AXL), the performance of the automotive giant is directly tied to the success of AAM. That is a strength when GM is doing great, and of course a huge weight on the automotive supplier when orders and sales are down at GM.

Of the $756 million in sales generated in the first quarter of 2013, $567.9 million were from General Motors, and the remaining $188.1 million from other sources.

The firm recognizes its extreme vulnerability because of so much reliance on the performance of GM, and is taking measures to address the problem, although not always successfully....

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