American Axle & Manufacturing and Sona Koyo Ltd. are ending their joint venture that manufactures and sells automotive, SUV, and light truck axle assemblies for the Indian market. As a result, AAM has assumed full ownership of AAM Sona Axle Private Limited Joint Venture in Pantnagar, India.
AAM Sona Axle was launched in 2009 as a greenfield development.
Sona Koyo Ltd. will sell its 30% interest in the venture to AAM for an unreported price. That company will focus now on its steering systems business, which manufactures gears, steering columns, and rack-and-pinion steering assemblies, and electric power-assisted steering to most of India's passenger car and utility vehicle OEMs.
Dr. Surinder Kapur, chairman of the Sona Group stated: "In light of the challenging times, corporations must focus more than ever on those things that make them successful."
In a joint announcement, the two companies said the ownership change will not affect daily operations at AAM Sona Axle.
"AAM remains totally committed to India and our customers in this important global market,” stated president and chief operating officer David C. Dauch. “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."