Anhui Jianghuai Auto Sets Up Chinese Components JV with American Axle

Chinese carmaker Anhui Jianghuai Automobile Co. and U.S. automotive components manufacturer American Axle & Manufacturing Holdings Inc. (AAM) are to set up a 50/50 joint venture (JV) to make automotive components for the Chinese market. According to AFX Asia, the new JV will be situated in the Hefei Economic and Technical Development Zone. The whole project is slated to involve an investment of over 200 million yuan (US$25.9 million).

The new facility will manufacture transfer case assemblies, suspension assemblies and other components for passenger cars, according to the report. AAM's core business in the United States involves the design and manufacture of drivelines and related components and chassis systems. The amount of investment in the Chinese automotive components industry over the last decade has increased exponentially. The cost benefits and large indigenous automotive industry have made the country an increasingly popular destination for large global components manufacturers such as Bosch and Delphi in which to base production facilities.