Product Warranties

3 Months Ended

Mar. 31, 2012

Commitments and Contingencies [Abstract]

Product Warranty Disclosure [Text Block]


8.	PRODUCT WARRANTIES

We record a liability for estimated warranty obligations at the dates our product are sold. These estimates are established using sales volumes and internal and external warranty data where there is no payment history and historical information about the average cost of warranty claims for customers with prior claims. We adjust the liability as necessary.

As part of the 2009 Settlement and Commercial Agreement, AAM agreed to expanded warranty cost sharing with GM, which began on January 1, 2011.

The following table provides a reconciliation of changes in the product warranty liability:



	Three Months Ended
	March 31,
	2012			2011
	(in millions)

Beginning balance	$	13.4		$	2.3
Accruals	3.6			3.0
Settlements	(0.2		)	(0.2		)
Adjustment to prior period accruals	(0.1		)	0.1
Foreign currency translation and other	0.1			0.1
Ending balance	$	16.8		$	5.3