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Actionable news in AXL: AMERICAN AXLE & MANUFACTURING HOLDINGS Inc,

American Axle Plunges After Reports Of Deep GM Production Cuts

Shares of drivetrain maker American Axle (AXL) are plunging after reports of potentially significant production cuts at General Motors (GM).

GM PRODUCTION CUTS: According to an earlier report from Reuters, the auto giant is weighing "whether to cancel at least six passenger cars in the U.S. market after 2020, including the Chevrolet Volt hybrid, which could be replaced in 2022 with a new gasoline-electric crossover model." Other GM production cuts may be aimed at the Buick LaCrosse, Cadillac CT6, Cadillac XTS, Chevrolet Impala and Chevrolet Sonic, Reuters sources added.

DEPENDENCY ON GM: In its 2016 annual report the company noted that it is the "principal supplier of driveline components to General Motors Company (GM) for its full-size rear-wheel drive light trucks and SUVs manufactured in North America, supplying substantially all of GM's rear axle and four-wheel drive and all-wheel drive axle requirements for these vehicle platforms. Sales to GM were approximately 67% of our consolidated net sales in 2016, 66% in 2015, and 68%...


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