German axle specialist ZF Friedrichshafen is talking with Chrysler about a partnership to operate a new axle plant the automaker is building in Marysville, near Port Huron in Michigan.
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Both Chrysler and ZF spokesmen confirmed what ZF termed ‘non-binding’ talks to the Detroit Free Press and Chrysler also confirmed the talks to Reuters. Unions have reportedly been telling members a deal has been struck but this is not the case.
Chrysler said last year it would build a new axle plant – opening in 2010 – as part of a pledge to spend US$3bn to make its vehicles more fuel efficient. It would replace an older plant in Detroit.
Earlier this year there was an unsourced Wall Stret Journal report saying the company was trying to sell the plants to private equity investors or established suppliers like Dana or American Axle.
The Free Press noted the decision to build the plant was made before Chrysler was acquired by Cerberus Capital Management, and that there has been talk ever since that the new axle plant could be affected.
Cerberus has sold off a California design studio and a Brazilian engine plant and, earlier this year did a deal with Linamar for the components supplier to lease part of the automaker’s Indiana transmission plant, the paper added.
Chrysler spokesman David Elshoff told the Free Press Chrysler was “exploring a partnership” with ZF involving the Marysville plant.
“This could be a scenario to help establish a very good, long-term foundation for the Marysville axle operation,” Elshoff said.
That could give the new plant – through ZF – the ability to supply other automakers, potentially expanding Chrysler’s global reach, the paper suggested.
