American Axle & Manufacturing forms joint venture with Saab

American Axle & Manufacturing Holdings Inc. (AAM), a global Tier 1 supplier of driveline and drivetrain systems and related components for the automotive industry, on September 24 announced it has formed a joint venture with Saab Automobile AB (Saab), a global premium car maker. The new company, e-AAM Driveline Systems AB (e-AAM), will engineer, develop and commercialize electric all-wheel-drive (e-AWD) and hybrid driveline systems for passenger cars and crossover vehicles. e-AAM systems will be designed to improve fuel efficiency, reduce CO2 emissions and provide all-wheel-drive capability utilizing torque vectoring for vehicle stability.

The corporate headquarters of e-AAM will be in Trollhattan, Sweden. The joint venture, which will be majority controlled by AAM, will commence operations on October 1, 2010. e-AAM will leverage existing Saab and AAM technology, engineering facilities, laboratories and testing equipment to expedite development time while minimizing cost. e-AAM will develop and market an innovative electric all-wheel drive system in a full-service package. The electric all-wheel drive system can be easily integrated into existing platforms, minimizing vehicle architecture changes.

e-AAM's technology has received strong interest in the marketplace. e-AAM systems will be featured in the next generation of Saab vehicles beginning in 2012. In addition, e-AAM will be showcasing its expertise and advanced products to other global OEMs.

"AAM is pleased to be launching this exciting new business opportunity with Saab," said AAM co-founder, chairman and CEO Richard E. Dauch. "e-AAM will leverage the outstanding competencies of both our companies in the development of state-of-the-art electric and hybrid driveline systems needed by global OEMs to improve the fuel efficiency, ride and handling performance and overall capability of their products. The new and innovative products to be engineered by e-AAM, as well as the new customers to be served by this joint venture, solidly support AAM's strategic initiative to expand and diversify our business."

"For Saab, the announcement of this partnership is a major step towards a successful future as an independent company," said Saab Automobile CEO Jan Ake Jonsson. "Saab is currently class-leading with its innovative Cross Wheel Drive system (XWD). The new electric all-wheel-drive system will secure a leadership position in its next generation Saabs. This joint venture will bring together Saab's world-class vehicle engineering expertise and AAM's extensive engineering, production and marketing capabilities, which leads to a powerful combination."