3Q 2020 Financial Performance Overview
Downside Protection Playbook
Sales Decline
0%
25%+
AND/OR
Potential Actions
Duration Expected Short
Longer
Restructuring Costs
Required?
Reduce Variable Costs
Direct Material (60% of COGS)
No
Hourly Headcount
Variable Overhead
Reduce Semi-fixed Costs
Salaried headcount, merit and incentive compensation adjustments/deferrals
•
Formal spending reduction programs (ex. travel)
Align future R&D, project and capital expenses to lower sales levels
Select Recapacitating of Facilities
•
Align capacity with customers
Plant loading adjustments to optimize capacity
Structural Capacity and Overhead Reduction
Global footprint consolidations
•
Significant Salaried Reduction in Force programs
Note: This list includes examples for illustrative purposes and does not include all potential actions
Limited
Moderate
Higher
AAM is analyzing its full playbook and in process with many actions across its global operations
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