American Axle & Manufacturing is selling its commercial vehicle axle business in India to a regional rival, Bharat Forge Ltd., for an agreed price of $65 million. The sale includes two manufacturing plants at Pune and Chennai, and an engineering and development center at Pune.
Bharat Forge is India’s largest manufacturing of closed- and open-die forgings, among other engineered components, which is the base for a global manufacturing business supplying automotive, power, oil-and-gas, rail, marine, aerospace, construction/mining, and defense manufacturers from plants in the U.S., Europe, and Australia, along with India.
According to AAM’s statement, AAM India Manufacturing Corporation Pvt. Ltd. had 12-month sales worth $156 million through June 30. The transaction is expected to close in Q4 2024
“The strategic decision to sell our commercial vehicle axle business in India enables us to strengthen our focus on ICE, hybrid, and full electric passenger car, pickup truck / SUV, and van applications globally and provides additional financial flexibility,” stated AAM chairman and CEO David C. Dauch. “We are committed to collaborating with Bharat Forge to execute this agreement efficiently and support the continuity of supply from these facilities to customers during the ownership transition.”
The Chennai plant opened in 2012, producing front and rear axles for commercial vehicles, for Asian markets. The Pune plant produces axle assemblies for heavy commercial vehicles produced in India and abroad;
Not included in the sale are the AAM components manufacturing plant at Chakan and the Pune business center that handles engineering, IT, and procurement shared services for AAM global operations.
Detroit-based American Axle & Manufacturing designs and manufactures driveline and drivetrain components at operations worldwide, including the U.S., Asia, Central and South America. It entered the Indian market through a joint-venture in 2007, and later acquired the business outright in 2011.
