American Axle and Manufacturing (AAM) in Detroit today announced it has entered into a joint venture agreement with China’s Liuzhou Wuling Automobile Industry Co. Ltd. to manufacture driveline systems, the companies announced.
Liuzhou AAM Automotive Driveline System Co. Ltd. will begin production later this year in a manufacturing facility in East Liuzhou in the Guangxi Province of China.
“Liuzhou AAM will be our latest manufacturing facility in China that further expands and diversifies our global footprint,” says David C. Dauch, AAM chairman and CEO. “AAM is committed to strategically growing with new customers in new markets. Liuzhou AAM will also continue to enhance our ability to provide both conventional and electric drive axles in the world’s largest automotive market.”
The new company will manufacture independent rear axles and drive heads for multi-purpose vehicles and crossovers. It will also produce driveline technology for SAIC-GM-Wuling’s SUV and MPV models. SAIC-GM-Wuling, a joint venture between General Motors Co. and SAIC, is the largest manufacturer of rear-wheel-drive light vehicles in China.
AAM designs, engineers, validates, and manufactures driveline, metal forming, powertrain, and casting technologies for automotive, commercial, and industrial markets. Wuling focuses on the design and manufacture of automotive parts, engines, and special purpose vehicles in China.