Tom Narayan's questions to AMERICAN AXLE & MANUFACTURING HOLDINGS (AXL) leadership • Q2 2025
Question
Tom Narayan from RBC Capital Markets asked for an update on the plant due diligence for the Dallee acquisition and whether there is still potential upside to synergy targets. He also inquired about the specific source of the Q2 tariff costs and if AAM is seeing reshoring inquiries from OEMs.
Answer
Chairman & CEO David Dauch confirmed that with shareholder approvals complete, AAM is gaining more access to Dallee's plants and information, and he remains hopeful for incremental upside on the operations side of synergies. EVP & CFO Christopher May specified that the $10 million in Q2 tariff costs came primarily from 'rest of world' scenarios. Dauch added that AAM is receiving inquiries from global OEMs, particularly Europeans and Asians, about localizing component production in the U.S.