American Axle and Manufacturing (AAM) and Liuzhou Wuling Automobile Industry, a subsidiary of Guangxi Automobile Group, have entered into a joint venture agreement to manufacture driveline systems, the companies announced.

Liuzhou AAM Automotive Driveline System will begin production later this year in a factory in the state-level economic development zone of East Liuzhou, in the Guangxi province.

"Liuzhou AAM will be our latest manufacturing facility in China that further expands and diversifies our global footprint," said David Dauch, AAM chairman and chief executive officer. "AAM is committed to strategically growing with new customers in new markets. Liuzhou AAM will also continue to enhance our ability to provide both conventional and electric drive axles in the world's largest automotive market."

Once production begins, Liuzhou AAM will manufacture independent rear axles and driveheads to meet the needs of the fast growing segments of multi-purpose vehicles and crossovers including vans, mini vans and sport utility vehicles.

Liuzhou AAM will produce driveline technology for SAIC-GM-Wuling's SUV and MPV models. SAIC-GM-Wuling is a joint venture between General Motors and SAIC and is the largest manufacturer of rear wheel drive light vehicles in China.