Customer Concentration Risk: Dependence on a few large automotive manufacturers for a significant portion of revenue exposes AXL to risks associated with those customers' financial health, production levels, and strategic decisions, including contract losses.

Automotive Market Downturn Risk: The cyclical nature of the automotive industry means that economic downturns, reduced consumer demand for new vehicles, or shifts in vehicle preferences can significantly decrease demand for AXL's products, impacting sales and profitability.

Electric Vehicle Transition Risk: AXL's historical focus on traditional internal combustion engine (ICE) drivetrain and driveline components poses a long-term challenge as the automotive industry transitions to electric vehicles, requiring substantial investment in new technologies and products to remain competitive.