American Axle & Manufacturing Holdings (AAM) is expanding its existing joint venture with Hefei Automobile Axle (HAAC), a subsidiary of JAC Group (Anhui Jianghuai Automotive Group) to now include all of HAAC’s light commercial axle business.

The existing joint venture, Hefei AAM Automotive Driveline & Chassis System, is currently a key supplier of rear beam axle, rear drive modules, power transfer units and suspension corners for Chinese independent brand passenger cars, SUVs and MPVs. By adding the light and medium duty commercial axle business, this expanded joint venture will supply front and rear beam axles to several leading light truck manufacturers, including JAC and BAIC Foton, making AAM the second largest axle supplier in China’s light commercial truck segment.

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Subject to regulatory approval in China, the expanded joint venture is expected to commence operations this month.

The expanded joint venture located in the provincial level economic development zone of Hefei, capital of Anhui Province, covers a 107,226 sq m land area and 54,000 sq m of manufacturing space.

“The expanded Hefei AAM joint venture broadens AAM’s product offerings and customers in the fast-growing China market. The new products to be manufactured in this facility, as well as the new customers to be served, support our long-term strategic goals of expanding and diversifying AAM’s product portfolio, customer base and global manufacturing and sourcing footprint,” said AAM chairman and CEO Richard Dauch. “AAM is pleased to expand our partnership with the JAC Group in this important business venture.”

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