Latest news with #AmericanAxle
Yahoo
16-05-2025
- Automotive
- Yahoo
American Axle to pursue secondary listing in U.K. after Dowlais deal
-- American Axle (NYSE:AXL) and Manufacturing said Friday it plans to pursue a secondary listing in London following its $1.4 billion acquisition of Dowlais Group (LON:DWL), the parent company of GKN (LON:GKN) Automotive. The Detroit-based company, already listed on the New York Stock Exchange, said the move is aimed at broadening investor access. It believes this will "ensure a greater range of both existing and prospective shareholders are able to access the future value creation opportunity of the combination." Jefferies analysts described the announcement as "a very interesting and unexpected update, but one that we see as positive, and as aligning more closely with the interests of shareholders if the deal does proceed." "We have written on our thoughts on this deal several times, including around the attractiveness of the US small-cap element, so we see this as welcome," analysts led by Vanessa Jeffriess added. The cash-and-stock deal to acquire U.K.-based Dowlais was first announced in January. The deal values the London-listed firm at around 1.16 billion pounds ($1.44 billion). Dowlais CEO Liam Butterworth said consolidation is important, as suppliers must offer a wider range of products to meet the diverse demands of customers, especially with China, the United States, and the European Union each pursuing distinct strategies in the shift to electric vehicles. American Axle expects the merger to provide scale benefits at a time when the automotive sector faces fluctuating EV demand, macroeconomic headwinds, and rising competition from Chinese electric vehicle makers. 'Recent global events have further highlighted the attractiveness of the combination,' the company said Friday, noting that regulatory filings were proceeding as scheduled. In March, U.S. President Donald Trump introduced a 25% tariff on imported cars and light trucks. However, in a partial easing of trade restrictions, automakers were granted a two-year grace period to boost the use of domestic components in vehicles assembled in the U.S. Related articles American Axle to pursue secondary listing in U.K. after Dowlais deal UBS upgrades Caterpillar as trade risks ease, but macro uncertainty remains Market reaction to Coinbase hack 'likely overblown': Mizuho Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Daily Mail
16-05-2025
- Automotive
- Daily Mail
Detroit buyer of Dowlais eyes secondary City listing after takeover
The US automotive supplier buying Dowlais Group is planning a secondary listing of its shares in London after the deal goes ahead. American Axle & Manufacturing agreed to acquire the car parts producer in a $1.4billion (£1.2billion) deal announced in January, just two years after Melrose Industries spun Dowlais out of its GKN Automotive division. American Axle said at the time it would seek to cancel the trading of Dowlais shares in London and list the enlarged firm on the New York Stock Exchange. However, the Michigan-based business now wants a secondary listing of its shares in the UK capital as part of the acquisition. It said this would 'ensure a greater range of both existing and prospective shareholders are able to access the future value creation opportunity of the combination'. American Axle's pursuit of Dowlais follows choppy electric vehicle demand and increasing competition from Chinese automakers, which benefit from generous public subsidies and large domestic demand. The enlarged group will benefit from greater scale and diversification, and create the financial strength to boost investment in new products and technologies. Following the deal, the merged group will have 50,000 staff members, with around 1,250 staff at risk of redundancy. Among the jobs threatened with the axe are duplicate head office, administrative and senior management positions, as well as research and development jobs in the US and Europe. Dowlais' London office in Victoria will also shut down, while its chief executive, Liam Butterworth, will stand down after gaining a £928,500 payment. In a statement on Friday, American Axle said both firms 'continue to believe that the strategic rationale for the combination remains compelling'. It added that the transaction 'will create a stronger business that is resilient across customers, geographies and products, resulting in the combined group being better positioned to navigate and succeed in an increasingly dynamic automotive industry and macroeconomic environment',. Dowlais Group shares were 0.8 per cent higher at 67.8p on Friday morning.
Business Insider
13-05-2025
- Business
- Business Insider
Analysts' Opinions Are Mixed on These Consumer Cyclical Stocks: Temple & Webster Group Ltd (OtherTPLWF) and American Axle (AXL)
Analysts have been eager to weigh in on the Consumer Cyclical sector with new ratings on Temple & Webster Group Ltd (TPLWF – Research Report) and American Axle (AXL – Research Report). Protect Your Portfolio Against Market Uncertainty Temple & Webster Group Ltd (TPLWF) Petra Capital analyst Sam Haddad maintained a Buy rating on Temple & Webster Group Ltd on May 8 and set a price target of A$20.00. The company's shares closed last Tuesday at $9.56. Haddad has an average return of 17.6% when recommending Temple & Webster Group Ltd. According to Haddad is ranked #1656 out of 9527 analysts. Currently, the analyst consensus on Temple & Webster Group Ltd is a Moderate Buy with an average price target of $11.17, representing a 16.8% upside. In a report issued on May 2, Jarden also maintained a Buy rating on the stock with a A$18.65 price target. American Axle (AXL) In a report issued on May 8, Tom Narayan from RBC Capital maintained a Hold rating on American Axle, with a price target of $5.00. The company's shares closed last Monday at $4.59, close to its 52-week low of $4.08. According to Narayan is a 3-star analyst with an average return of 2.6% and a 43.6% success rate. Narayan covers the NA sector, focusing on stocks such as Bayerische Motoren Werke Aktiengesellschaft, Mobileye Global, Inc. Class A, and Magna International. The word on The Street in general, suggests a Hold analyst consensus rating for American Axle with a $5.18 average price target, representing a 13.6% upside. In a report issued on April 23, TD Cowen also maintained a Hold rating on the stock with a $4.60 price target.
Yahoo
30-04-2025
- Automotive
- Yahoo
Valeo, American Axle tangle in $25M lawsuit after Stellantis cancels Ram electric heavy-duty truck
Stellantis' scrapped plans for an electric heavy-duty Ram truck has sparked a $25 million legal fight between two major auto parts suppliers. Valeo North America Inc. and its French and German subsidiaries are suing American Axle & Manufacturing Inc. for its alleged refusal to cover sunk costs for an EV program sourced and eventually canceled by Stellantis, according to the lawsuit, filed in January in Oakland County Circuit Court in Michigan. Valeo, whose North American base is in suburban Detroit, spent tens of millions of dollars to develop electric motors and inverters for American Axle e-beams that were to go into model year 2027 heavy-duty Ram trucks, Valeo said in the lawsuit. Negotiations between the two suppliers started in 2022, but the program was terminated a year ago. Sign up to get our monthly Done Deals newsletter focused on the latest dealership transactions and insights into the buy-sell market. 'From the outset, starting from sourcing and nomination, through AAM's termination of the program in April 2024, Valeo worked diligently in coordination with AAM to bring the program to fruition,' according to the lawsuit filed by Honigman attorney Andrew Pauwels on behalf of Valeo. American Axle attorneys filed a motion to dismiss the case in March, arguing that the suppliers never had an enforceable contract and therefore no breach of contract occurred. American Axle, through a spokesman and attorneys, declined to comment. Pauwels and Valeo did not respond to requests for comment. The case is just the latest electrification-related dispute to boil over in the supply chain. Many auto suppliers, from small family-owned plants to the world's largest parts makers, are reeling from the EV volume bust. Just as automakers were under immense pressure a couple of years ago to lead the EV charge, suppliers were compelled to win contracts for those programs. EVs were seen as the key to long-term sustainable business, but when demand unexpectedly slowed, many suppliers were left holding the bag. That resulted in monetary disputes among parts manufacturers and automakers. Most, but not all, have remained out of the public eye. Bosch, the world's largest auto supplier, sued startup Rivian last year after the automaker axed its e-motor supply deal. The case was settled out of court. In early 2023, American Axle entered an 'integrated, comprehensive agreement' calling for Valeo to design and manufacture e-motors, inverters and software modules, the lawsuit says. After 13 months, however, American Axle canceled the program and allegedly refused to reimburse Valeo. Stellantis' plan to electrify a heavy-duty truck has not been previously reported. The lawsuit does not specify what type of truck it had targeted to be battery-powered. Its gasoline and diesel heavy-duty offerings include the 2500 and 3500 pickups and chassis cab, marketed for commercial use. Stellantis declined to comment. American Axle is Ram's 'strategic driveline supplier through 2030,' securing contracts to supply its heavy-duty pickup trucks with axles and driveshafts, according to a 2021 news release from the Detroit supplier. The business exceeds 'several billion dollars.' The Valeo lawsuit highlights a remarkable reversal by Stellantis. Three years ago, the automaker was confident enough in EVs to source parts for an electric heavy-duty vehicle — a segment that was seen as difficult to electrify. Now, Stellantis has hit the brakes on electric light-duty pickups, too, delaying production of the all-electric Ram REV until next year and pulling forward the hybrid Ramcharger at Sterling Heights Assembly Plant. Competitors Ford Motor Co. and General Motors are also nursing an electric pickup headache turned nightmare for some suppliers. Volumes of Ford's F-150 Lightning have fallen dramatically below projections, while GM has twice delayed the launch of its Orion Assembly plant dedicated to electric Silverados and Sierras, largely because of a lack of demand. It has left plenty of suppliers with stranded capital and fears about return on investment. The Valeo lawsuit against American Axle would culminate in a trial by jury next year if the dispute is not settled. Have an opinion about this story? Tell us about it and we may publish it in print. Click here to submit a letter to the editor. Sign in to access your portfolio
USA Today
30-01-2025
- Automotive
- USA Today
American Axle's latest acquisition highlights its long rise from near death
With its acquisition of a British competitor, Detroit-based American Axle will expand its production in Michigan, diversify its business beyond North America and reduce its reliance on General Motors — a megamove that signals how far the company has come since its near death 15 years ago. The purchase of British driveline provider Dowlais for $1.44 billion, announced Wednesday, marks the latest step for the company to achieve greater scale to meet the demand of electric vehicles in the U.S. market and carve out an even larger global footprint. The combined company will be among the world's largest auto suppliers. Need a break? Play the USA TODAY Daily Crossword Puzzle.
