American Axle & Manufacturing Announces a Voluntary Separation Program for Hourly Associates Represented by the UAW at AAM's Buffalo Gear, Axle & Linkage Facility

DETROIT, Aug. 14, 2007 -- American Axle & Manufacturing Holdings, Inc. (AAM), which is traded as AXL on the NYSE, today announced it will offer a voluntary separation program to all hourly associates represented by the United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) at its Buffalo Gear, Axle & Linkage facility in Buffalo, New York.

The program will begin in September 2007 and is related to AAM's previously announced plans to idle a portion of its U.S. production capacity dedicated to the mid-sized light truck product range.

Under the Buffalo Separation Program (BSP), AAM will offer a range of early retirement incentives and buy-outs to approximately 650 eligible hourly associates. These offers include:

  -- A monthly incentive for associates eligible to grow into retirement
     within four years;
  -- $50,000 incentive to retirement eligible associates;
  -- $70,000 buy-out incentive to associates with less than 10 years
     seniority;
  -- $100,000 buy-out incentive to associates with greater than or equal to
     10 years seniority;
  -- An early retirement program for associates with greater than or equal
     to 10 years of service and greater than or equal to 50 but less than 65
     years of age.

Associates who retire as part of the BSP will retain all vested pension and other postretirement benefits. Associates who accept a buy-out will retain vested pension benefits but will forfeit other postretirement benefits.

AAM currently expects to incur special charges of as much as $85 million for the BSP, including pension and other postretirement benefit curtailments and special termination benefits. As a result of the uncertainty related to acceptance rates and the amount of pension and other postretirement benefit charges related to this voluntary program, AAM withdraws its 2007 earnings and cash flow guidance.