American Axle & Manufacturing (AAM) has entered into an agreement through one of its subsidiaries to form a joint venture with Hefei Automobile Axle Co., a subsidiary of the JAC Group. The new company, which will be called Hefei AAM Automotive Driveline & Chassis System Co. Ltd., will manufacture and sell rear beam axles, front axles, power transfer units, rear-drive modules and suspension modules for passenger cars, SUVs and multi-purpose vehicles for the Chinese market. Each party will own 50% of the new company.

The joint venture, which is subject to regulatory approval in China, is expected to commence operations in the first quarter of 2009. The facility will be located in the development zone of Hefei, the capital on Anhui Province.