American Axle and Manufacturing has launched a joint venture to build driveline systems in China.

The company on Thursday announced it would partner with Liuzhou Wuling Automobile Industry Co. Ltd., a subsidiary of Guangxi Automobile Group Co. Ltd., to begin production later this year in the Guangxi Province.

“Liuzhou AAM will be our latest manufacturing facility in China that further expands and diversifies our global footprint,” David C. Dauch, AAM chairman and CEO, said in a statement. “AAM is committed to strategically growing with new customers in new markets. Liuzhou AAM will also continue to enhance our ability to provide both conventional and electric drive axles in the world’s largest automotive market.”

AAM is the latest U.S. automotive company to launch a joint venture in China. Currently, foreign companies wishing to sell manufacture and sell products in China are required to partner in a joint venture with a Chinese company.

The partnership comes as Detroit automakers and other Michigan groups are urging the Trump administration to resolve differences with China without escalating a trade war after China threatened tariffs on additional U.S. products, including cars, auto parts, chemicals, soybeans, corn and beef.

The AAM joint venture will make independent rear axles and driveheads for vans, minivans and SUVs in China, according to a statement.

Twitter: @Ian_Thibodeau

Read or Share this story: