DETROIT, Mich., Jan. 7, 2011 /PRNewswire/ — American Axle & Manufacturing (AAM), today announced that it has assumed full ownership of the AAM Sona Axle Private Limited Joint Venture (AAM Sona Axle) in Pantnagar, India. AAM Sona Axle, previously a joint venture between AAM and Sona Koyo Limited to manufacture and sell light truck, passenger car and SUV axle assemblies for the India market, is now an independent company wholly owned by AAM.
The partners have made a joint decision to reposition AAM’s partnership with Sona Koyo in India. As a result, Sona Koyo will focus on its core business operations and sell its 30 percent stake in the joint venture to AAM. The ownership transfer will not affect day-to-day operations at AAM Sona Axle.
“AAM remains totally committed to India and our customers in this important global market. As a wholly owned entity, we now have greater flexibility to pursue a wide range of opportunities in India. I am counting on continued good relations with the Sona Group, whose local expertise has been very important to AAM as we have established our business in India,” said David C. Dauch, President & Chief Operating Officer of AAM.
Dr. Surinder Kapur, Chairman, Sona Group said, “In light of the challenging times, corporations must focus more than ever on those things that make them successful.” He added, “The decision to dissolve the joint venture is a result of an amicable and mutual agreement between the partners. We intend to maintain close relations with AAM in order to explore doing business together in the future.”
Sona Koyo is India’s largest manufacturer of steering systems with a market share exceeding 45 percent. Sona Koyo supplies gears, steering columns and rack and pinion steering assemblies as well as electric power assisted steering to a majority of India’s passenger car and utility vehicle manufacturers.
American Axle & Manufacturing Holdings, Inc. is a publicly traded company on the NYSE (Symbol: AXL) and is a world leader in the manufacture, engineering, design and validation of driveline and drivetrain systems and related components and modules, chassis systems and metal-formed products for trucks, sport utility vehicles, passenger cars and crossover utility vehicles. In addition to locations in the United States (Indiana, Michigan, New York, Ohio, and Pennsylvania), AAM also has offices or facilities in Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland, South Korea, Sweden, Thailand and the United Kingdom.
Certain statements contained in this press release which are not historical facts contain forward-looking information with respect to the Company’s plans, projections or future performance, the occurrence of which involves risk and uncertainties that could cause the company’s actual results or plans to differ materially from those expected by the company which include risk factors described in the Company’s filings with the Securities and Exchange Commission.