AAM Secures New Business to Support Scout Motors' Iconic SUV and Truck Launch

Rhea-AI Summary

American Axle & Manufacturing (NYSE: AXL) has secured a significant agreement with Scout Motors to provide electric drive components for Scout's upcoming electric vehicles. AAM will supply front electric drive units (EDUs) and rear e-Beam axles for the Scout Traveler SUV and Terra pickup truck. These vehicles will feature a body-on-frame chassis and offer both fully electric and gasoline range-extended powertrain options. The agreement represents a major win for AAM's electric drive technology division and aligns with both companies' commitment to American manufacturing. Scout Motors is currently accepting reservations, with production scheduled to begin in 2027.

Positive

• Secured major contract to supply electric drive components for Scout's new vehicle lineup
• Agreement positions AAM as key supplier in the growing electric vehicle market
• Long-term revenue opportunity with production starting in 2027
• Strengthens AAM's presence in the electric vehicle component sector

Negative

• Production not starting until 2027, indicating delayed revenue impact
• Potential competition from other suppliers in the growing EV market

DETROIT, June 11, 2025 /PRNewswire/ -- American Axle & Manufacturing Holdings, Inc. (AAM), (NYSE: AXL) announced it has secured an agreement with Scout Motors to supply front electric drive units (EDUs) and rear e-Beam axles for the much-anticipated launch of the all-new electric Traveler SUV and Terra pickup truck.

Both the Scout Traveler SUV and Scout Terra pickup truck will be built on a body-on-frame chassis and configurable with 100 percent battery electric or gasoline fueled range-extended energy systems to give customers the confidence they need to electrify on their terms.

"We are honored to support the rebirth of the iconic Scout brand and play a significant role in these important vehicle launches with AAM's award-winning electric drive technology," said AAM Chairman and Chief Executive Officer, David C. Dauch. "Additionally, Scout and AAM share a commitment to American design, engineering and innovation with both companies having a strong presence in the U.S."

Scout Motors is accepting customer order reservations now, with initial production of the Traveler and Terra vehicles targeted to begin in 2027. 

About AAM
As a leading global Tier 1 Automotive and Mobility Supplier, AAM designs, engineers and manufactures Driveline and Metal Forming technologies to support electric, hybrid and internal combustion vehicles. Headquartered in Detroit, MI, with over 75 facilities in 16 countries, AAM is bringing the future faster for a safer and more sustainable tomorrow. To learn more, visit www.aam.com.

About Scout Motors
The Scout, originally produced by International Harvesters from 1961-80, was the world's first utility vehicle capable of both off-road adventure and family duty. It was the 8-day-a-week truck. Scout is now an American icon whose heritage is kept alive by a dedicated community of doers who continue to push their vehicles on the farm, in the wilderness, and on family outings. Scout Motors was formed to craft the next era of trucks and rugged SUVs rooted in the same tradition that made the original Scout an American icon. Scout Motors is revitalizing a legend and returning to American shores. To learn more, visit www.scoutmotors.com.

For more information, contact:

Christopher M. Son
Vice President, Marketing & Communications, AAM
(313) 758-4814
chris.son@aam.com

Or visit the AAM website at www.aam.com.

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SOURCE American Axle & Manufacturing Holdings, Inc.

FAQ

What components will AAM supply to Scout Motors?

AAM will supply front electric drive units (EDUs) and rear e-Beam axles for Scout's Traveler SUV and Terra pickup truck.

When will Scout Motors begin production of vehicles with AAM components?

Production of the Scout Traveler and Terra vehicles is targeted to begin in 2027.

What types of powertrains will the Scout vehicles offer?

The vehicles will offer both 100% battery electric and gasoline fueled range-extended energy systems.

Is Scout Motors currently accepting orders for their vehicles?

Yes, Scout Motors is currently accepting customer order reservations.

What is the significance of this deal for AAM (AXL)?

This deal positions AAM as a key supplier in the electric vehicle market and represents a significant long-term revenue opportunity starting in 2027.