Saab Automobile and AAM Form New Technology Company: e-AAM Driveline Systems

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Sep 24, 2010, 03:00 ET

TROLLHATTAN, Sweden, Sept. 24 /PRNewswire/ --

Saab and American Axle Manufacturing (AAM) in joint venture to develop electric and hybrid driveline systems
New company, e-AAM Driveline Systems, headquartered in Trollhattan, Sweden
Major step for Saab towards a successful future as an independent company

Saab Automobile and American Axle Manufacturing (AAM) today announced the formation of a jointly-owned company for the engineering, development and marketing of innovative electric all-wheel drive systems, as well as electric and hybrid driveline systems. The new company, called e-AAM Driveline Systems, will be based in Trollhattan. The joint venture will commence operations on October 1.

e-AAM will develop and market an innovative electric all-wheel drive system in a full service package. This electric all-wheel drive system can be easily integrated into existing platforms, minimizing vehicle architecture changes. Saab will become a client of e-AAM Driveline Systems, purchasing components to be used in next-generation Saab vehicles from 2012. The new company will also market its expertise and advanced products to other car manufacturers on a global basis.

Announcing the formation of e-AAM Driveline Systems, Saab Automobile CEO Jan Ake Jonsson said: "For Saab, the announcement of this partnership is a major step towards a successful future as an independent company. Saab is currently class-leading with its innovative Cross Wheel Drive system (XWD). The new electric all-wheel drive system will secure a leadership position in its next generation Saabs. This joint venture will bring together Saab's world-class vehicle engineering expertise and AAM's extensive engineering, production and marketing capabilities, which leads to a powerful combination."

Richard E. Dauch, CEO, Chairman and co-founder of American Axle Manufacturing, said: "AAM is pleased to be launching this exciting new business opportunity with Saab. e-AAM will leverage the outstanding competencies of both our companies in the development of state-of-the-art electric and hybrid driveline systems needed by global OEMs to improve the fuel efficiency, ride and handling performance and overall capability of their products. The new and innovative products to be engineered by e-AAM, as well as the new customers to be served by this joint venture, solidly support AAM's strategic initiative to expand and diversify our business."

Note to Editors:

Saab, or Svenska Aeroplan Aktiebolaget (Swedish Aircraft Company), was founded in 1937 as an aircraft manufacturer and revealed its first prototype passenger car 10 years later after the formation of the Saab Car Division. In 1990, Saab Automobile AB was created as a separate company, jointly owned by the Saab Scania Group and General Motors, and became a wholly-owned GM subsidiary in 2000. In February 2010, Spyker Cars N.V. of the Netherlands, acquired the company from GM as an independently-run business.

Saab cars reflect the brand's unique Scandinavian design ethic, which is fused with its aircraft engineering heritage. The company is a global premium car maker with a distinguished history of innovation. It is recognized for its pioneering role in turbocharging, as well as occupant safety and the introduction of flex-fuel technology through Saab BioPower. Saab Automobile AB currently employs approximately 3,800 staff in Sweden, where it operates world-class production and technical development facilities at its headquarters in Trollhattan, 70 km north of Gothenburg.

AAM is a publicly traded company on the NYSE (Symbol: AXL) and a world leader in the manufacture, engineering, design and validation of driveline and drivetrain systems and related components and modules, chassis systems and metal-formed products for trucks, sport utility vehicles, passenger cars and crossover utility vehicles. In addition to locations in the United States (Indiana, Michigan, New York, Ohio, and Pennsylvania), AAM also has offices or facilities in Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland, South Korea, Thailand and the United Kingdom.