Getrag and Volvo Cars Invests more than SEK 1 Billion in Köping
Getrag and Volvo Cars Invests more than SEK 1 Billion in Köping
Volvo Car Corporation has reached a preliminary agreement with the German transmission company GETRAG regarding the production start-up of AWD systems at the Volvo Cars plant in Köping.
The plan is to invest more than SEK1 billion in a jointly owned company specialized in AWD systems for cars.
The new company in Köping, which has not yet been named, will begin operating during the second half of 2003. Getrag/Dana Holding will own 60 per cent of the new company and Volvo Car Corporation the remaining 40 per cent.
The plan is to develop the Köping plant into a complete company within the field of AWD technology. The company will market its services as an independent supplier to the automotive industry in general, not only to companies within the Ford group.
- This technology has an excellent future potential and we expect to be able to expand, says Tobias Hagenmeyer, CEO of the GETRAG Corporate Group with headquarters in Cologne, Germany. Four-wheel drive vehicles are increasing its share of the world auto- market, adds Hagenmeyer.
- The operations in Köping will be streamlined to create a centre for the technological development, purchasing, production and marketing of AWD systems and components.
The Köping Plant will also continue to produce chassis components, says Curt Germundsson, Senior Vice President of Manufacturing at Volvo Cars with headquarters in Gothenburg, Sweden.
This new AWD operation will mean that Volvo Cars’ production of manual transmissions gradually will be transferred to GETRAG FORD Transmissions in Cologne during 2004.
The move of manual transmissons from Köping to GETRAG FORD Transmissions in Cologne gives the opportunity to coordinate transmission manufacture within the Ford group in a more efficient way. A Volvo development team of manual transmissions remains in Göteborg under the umbrella of GETRAG FORD Transmissions to ensure that future production continues to be in line with the product and quality requirements of the Volvo brand.
During a transition period in Köping there will be a possible surplus of employees.
Various measures will be taken in order to find solutions for all of those affected.
Before the deal can be completed, final contracts must be signed and the EU’s competition authority must approve the deal.
For further information, please contact:
Christer Gustafsson at Public Affairs, Volvo Car Corporation +46 31 596525
Friedemann Strasser, President & CEO GETRAG Corp. USA +1 828 428 1102
Tony Shelbourn, Vice President Corporate Relations, Dana Corp. +1 419 535 4661
Karin Burgmer, Corporate Communications, GETRAG FORD Transmissions, +49 221 5897 2010
Dept 50250/Ch.G
Short information about stakeholders
GETRAG is privately owned and located in Untergruppenbach in Germany and was founded in 1935 by Hermann Hagenmeyer. GETRAG is now located in 16 sites around the world (Germany, Italy, France, UK, USA and India) and produces Manual Transmissions for Passenger Cars, SUVs, Vans, Motorcycles and Light Trucks and Automated Manual Transmissions (ASG®) for the Automotive Industry. The company revenues reached the amount of EUR 1.9 billion 2002 and employs more than 9,000 employees.
Together with the US Dana Corporation, a major supplier to the automotive industry, GETRAG has set up the Getrag/Dana Holding Company, which will be the principal owner of the new company in Köping.
DANA Corporation is a publicly traded Company at the NYSE (Symbol: DCN) and a global leader in the design, engineering, and manufacturing of value added products and systems for automotive, commercial, and off highway vehicle manufacturers and their related aftermarket.
The company employs more than 60,000 people worldwide. Founded in 1904 and based in Toledo, Ohio, DANA operates hundreds of Technology, manufacturing and customer service facilities in 34 countries. The company reported sales of USD 10.3 billion in 2001.
GETRAG FORD Transmissions is a 50:50 joint venture between Ford and GETRAG.
The company specializes in the development and production of manual and auto shift manual transmissions. GETRAG FORD Transmissions is based in Cologne and has production sites in Cologne, Bordeaux and Halewood.
Volvo Cars in Köping produces some 150,000 manual transmissions a year, together with chassis components for the rear-wheel and front-wheel drive units, spring struts and around 100,000 basic axles and angle gears for AWD.
At the present time, the plant in Köping supplies manual transmissions and AWD and chassis components to Volvo Cars. Some 30 per cent of Volvo Cars’ transmissions are sourced from Köping. Volvo Cars in Köping has 1,232 employees.