As a core technology, Chrysler's axles are going to be put into production at Chrysler's new plant in Marysville, Michigan. The axles are being produced with a specific Mercedes axle-making technology modified for Chrysler products; the axles will not produce as much internal friction, leading to better fuel economy.
The Marysville plant is replacing an old Chrysler axle plant in Detroit, and the Marysville plant is located 55 miles northeast of Detroit. The $700 million Marysville plant was planned when Chrysler was still a part of DaimlerChrysler AG, before they were acquired by Cerberus Capital Management LP last year. The new plant is scheduled to begin operations in 2010, with one of the first axle orders being slated for the redesigned 2010 Jeep Grand Cherokee.
Installation of the equipment used in axle-making is set to begin at the new plant on October 1. Because producing their axles in-house increases total cost compared to purchasing from outside suppliers, Chrysler is looking for partners in its venture. With an annual capacity of about 1.2 million axles, the plant will be able to supply most of Chrysler's internal axle needs while serving outside customers as well. Competitors for the plant project include the likes of American Axle & Manufacturing Holdings Inc., Dana Holding Corporation, and Linamar Corporation.
Source: Automotive News (subscription required)