American Axle & Manufacturing Announces $133 Million Expansion of Michigan Plant to Boost U.S. Production Capabilities!

American Axle & Manufacturing Inc. (AAM), a leading Tier 1 automotive supplier, has announced a major $133 million investment to expand its manufacturing operations in Three Rivers, Michigan. The expansion aims to strengthen AAM’s domestic production capabilities, support key automaker customers, and modernize plant infrastructure to meet the evolving demands of the automotive industry.

The Three Rivers facility currently produces front and rear axles, steering linkages, and all-wheel-drive systems for major OEMs such as General Motors, Stellantis, and Nissan. With this new investment, AAM plans to install an advanced production line, introduce state-of-the-art machinery, and upgrade key systems including HVAC and wastewater treatment to ensure sustainable operations.

According to American Machinist, the project will not only modernize manufacturing infrastructure but also enhance operational efficiency and workforce capabilities. The Michigan Economic Development Corporation (MEDC) has backed the initiative by approving a five-year, 100% State Essential Services Assessment (SESA) tax exemption valued at approximately $1 million to support the project.

“These investments are necessary to ensure our plant infrastructure and advanced manufacturing processes remain competitive while supporting our highly skilled workforce to meet the strict requirements of our OEM customers,” said Tolga Oal, president of Driveline at AAM.

The investment comes at a time when U.S. automakers are pushing suppliers to reshore production in response to rising tariffs and global supply chain challenges. AAM’s decision reflects a broader trend in the industry—shifting focus back to domestic manufacturing to secure supply chains and reduce dependency on overseas production.

This is not the first time AAM has chosen to invest in its Michigan operations. In 2021, the company prioritized upgrades at the same facility over its plant in Mexico, channeling $39 million into modernization efforts that created 100 new jobs. That earlier project also benefited from a SESA exemption worth nearly $500,000.

Beyond its Michigan expansion, AAM is in the final stages of completing a landmark $1.5 billion acquisition of Dowlais Group plc, the parent company of GKN Automotive and GKN Powder Metallurgy. This acquisition is expected to significantly broaden AAM’s global footprint in driveline and powertrain technologies, enabling the company to better serve its OEM partners and participate in the next generation of mobility solutions.

With this latest expansion, AAM reinforces its commitment to innovation, competitiveness, and sustainability in U.S. manufacturing. The investment underscores the company’s long-term vision to integrate advanced production technologies, enhance domestic supply chains, and continue delivering high-performance components for the global automotive industry.