American Axle in New China JV

American Axle & Manufacturing Holdings has agreed to form a new joint venture with Hefei Automobile Axle Co. Ltd. to produce rear beam axles, front axles, power transfer units, rear drive modules, and suspension modules for passenger cars, SUVs, and multi-purpose vehicles in China.

Hefei Automobile Axle is a subsidiary of the JAC Group (Anhui Jianghuai Automobile Group Co, Ltd.)

Hefei AAM Automotive Driveline & Chassis System Co. Ltd. will be built at site about 400 km west of Shanghai. Each partner will own 50% of the new venture, which will begin operation in the first quarter of 2009.

"The Hefei AAM joint venture is AAM's second manufacturing operation in the fast-growing China market,” stated AAM chairman Richard E. Dauch. “The new products to be manufactured in this facility, as well as the new customers to be served by this joint venture, support our long-term strategic goals of expanding and diversifying AAM's product portfolio, customer base and global manufacturing and sourcing footprint."