ArvinMeritor has formed two joint ventures with Volvo Group to produce commercial vehicle drive axles.
The new arrangement will see more than 200,000 axles being made annually by plants located in France.
ArvinMeritor is now one of Volvo’s largest global suppliers, providing more than 300,000 axles for commercial truck applications in North America, Europe, Australia, Brazil and India.
A memorandum of understanding, which guided the formation of the joint ventures, was announced late last year.
A portion of non-drive axles currently made at Volvo’s Koping, Sweden, facility, would be shifted to production at ArvinMeritor’s Lindesberg, Sweden, facility and to the St. Priest, France, joint venture.
Volvo views the new ventures as another step in its strategic alignment with ArvinMeritor for axle supply. In late 1998, ArvinMeritor acquired Volvo’s commercial axle manufacturing facility in Lindesberg, Sweden.
As part of that transaction, ArvinMeritor entered a long-term supply agreement with Volvo for heavy-duty drive axles, which has now been expanded.