American Axle Expanding Domestic Driveline Capacity

American Axle & Manufacturing has slated a $132.9-million investment to expand production at its Three Rivers, Mich., manufacturing plant, where it produces front and rear axles for automotive OEMs like General Motors, Stellantis, and Nissan. In its announcement, AAM stated it will be installing a new production line, and indicated the expansion will lead to new jobs at the southwest Michigan plant.

According to reports, improvements will be made to the plant structure and HVAC system, the wastewater treatment systems, as well as new machinery and updated production lines.

AAM did not detail the schedule for the expansion project.

“These investments are necessary to ensure our plant infrastructure and advanced manufacturing processes remain competitive, while supporting our highly skilled workforce,” stated Tolga Oal, president of AAM’s driveline division.

The project has been approved for a five-year tax exemption worth $978,960 by the Michigan Economic Development Corp. An MEDC board member noted the investment will establish the Three Rivers plant as an AAM “center of excellence,” and keep production programs in the U.S. as a counter to tariffs on imported vehicle parts.

Another state body, the Michigan Strategic Fund, recently approved a five-year tax exemption worth up to $468,888 based on the value of the new capital investment program.

The Three Rivers plant produces front and rear axles, steering linkages, and AAM’s EcoTrac all-wheel drive system. The 123-acre plant has hot-, warm-, and cold-forging process lines, along with precision machining, heat-treating, and assembly operations.

Detroit-based AAM manufactures driveline and drivetrain systems, and related components at 11 U.S. locations and dozens more in Asia, Europe, and South America. The company is in the process of completing a $1.44-billion takeover of Dowlais Group, the engineering group that includes GKN Automotive and GKN Powder Metallurgy.