Bank of America Merrill Lynch 2019 New York Auto Summit April 17, 2019
Forward Looking Statements This contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward- looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements. These risks and uncertainties include factors detailed in the reports we file with the SEC, including those described under “Risk Factors” in our most recent Annual Report on Form 10-K. These forward-looking statements speak only as of the date of this communication. We expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward- looking statement contained herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. 2
Performance Improvement Plans – 1Q 2019 Update Status Update Anticipated Exit Rate Status 3Q 2018 Issues 3Q18 4Q18 1Q19 2Q19 Driveline - Changes affecting build-out and launch - New Ram HD program launched, initial - Scrap performance customer volume ramp curve slower - Supplier delivery performance than expected - 1 e-Drive supplier issue remains open - New GM truck launches performing as expected Metal Forming - European capacity constraints - Eliminated delivery past-due conditions Powertrain - Ineffective program management - Accelerating implementation of IPM systems - Launch performance - Reducing premium costs through improved - Capacity constraints launch performance and operating efficiency - Minor changes to initial customer launch timing on certain programs Casting - Availability of labor - Actions to resolve labor shortage have improved - Operational inefficiencies performance and reduced premium costs - Inflationary pressures - Implemented customer pricing actions AAM is generally on track to resolving the operating challenges that developed in 3Q 2018 * To ensure consistency with previous disclosures, this update reflects our segments prior to the business unit reorganization that took place in January of 2019 3