American Axle Offers Buyout To 1,500 UAW Employees

American Axle & Manufacturing Holdings said Thursday that 1,473 United Auto Workers employees accepted the company's buyout offer, a restructuring move the auto supplier expects will cost $140 million.

AAM said the restructuring will save $100 million annually.

The company's special attrition program was offered to all UAW represented associates at AAM's master agreement facilities. AAM's agreement facilities are located in Detroit, Michigan; Three Rivers, Michigan; Buffalo, New York; Tonawanda, New York; and Cheektowaga, New York.

Under the program, AAM has offered several early retirement incentives, including buy-outs and educational opportunities. Buyout recipients will also retain all vested pension and postretirement benefits.

Approximately 265 retirement-eligible associates participated in this program, while an additional 1,208 associates elected one of the buyout options at these facilities. More than 1,300 of these associates have left the company before year-end 2006.

Also on Thursday, AAM said it will to take a charge of as much as $200 million in the fourth quarter of 2006, as it plans to idle some of its U.S. production dedicated to midsize light trucks.