Getrag Sells Axle Bussiness to GKN

A new chapter in the automotive tech business history is being written as you are reading this piece of news, as Getrag today announced that it will see its entire Axle Business to the UK-based GKN plc. In addition to this, the co-shareholders, Volvo Car Corporation and Dana Holding will also sell their respective shares in the corresponding companies.

We are talking about the company’s class all-wheel-drive and rear-wheel-drive driveline solution production business, which includes GETRAG All Wheel Drive AB with the European locations Koping, Sweden and Cologne, Germany as well as GETRAG Corporation with the North American locations in Sterling Heights, Michigan and Newton, North Carolina.

The transaction should be finished by the end of September this year. Of course, we are in 2011, when electric and hybrid technologies are extremely important, so these couldn’t have been missing from the deal. Getrag will also sell GKN an exclusive license for electric drivetrain tech, which will be featured in electric and hybrid application for European and North American markets.

The move is part of Getrag’s consolidation and globalisation strategy, with the company aiming to focus on its core business - transmission technology.

"The demand for our dual clutch transmissions steadily grows in China, Europe and America. We see our future in this technology and want to make sure that we are able to satisfy the growing number of customers," explained Mihir Kotecha, CEO of GETRAG Corporate Group.