"This partnership gives Chrysler access to advanced axle technologies from
a partner that is a leading worldwide supplier of driveline and chassis
technology," said Chrysler LLC President and Vice Chairman
This program will consolidate the number of axles used on the Company's vehicles for greater economies of scale. Included in the program is a family of front-wheel-drive axles and a family of rear-wheel-drive axles based on proprietary ZF designs and a Chrysler-designed rear-wheel-drive axle.
"This partnership with Chrysler and the UAW further demonstrates ZF's
intention to increase market presence with axles and to use this as a
foundation for future explorations with additional customers," said ZF CEO
The Chrysler / ZF axle-making partnership, contingent on state and local
incentives, ensures the retention of Chrysler employees and anticipates a
phased changeover from current Detroit Axle-centered operations. The
"This partnership will help retain a solid, long-term foundation for UAW workers employed in axle-making operations," said UAW Vice President General Holiefield. "By partnering with ZF at the new Marysville Axle Plant, our employees may be able to take on additional work -- which is good news for expanded employment opportunities."
The creation of the Chrysler / ZF axle-making partnership will have no negative effect upon any product programs or their timing.
Terms of the agreement were not disclosed.
As outlined in the Company's Recovery and Transformation Plan, partnership opportunities are critical to Chrysler's future success. These opportunities involve new markets, new segments, new potential alliance partners and new sources for components. Chrysler's global strategy builds on the company's historic strengths, including the ability to respond rapidly and creatively to emerging opportunities. Forging strategic alliances is a cornerstone of the strategy.
The axle plays a major role in the chassis system as a supporting link between wheels and vehicle body. All forces and movements between wheel and vehicle structure are transmitted via the axle. The drive axle ensures that engine motive power reaches the wheels. The front axle also transmits steering movements to the wheels.
Regardless of their design, axles are mainly responsible for ensuring optimum tire use in all driving conditions. Apart from function, weight, installation space and crash performance are further important aspects of axle system development.
About Chrysler LLC
Chrysler LLC, headquartered in
ZF is a leading worldwide supplier of driveline and chassis technology.
Headquartered in Friedrichshafen,
ZF operates an extensive manufacturing network in
SOURCE Chrysler LLC