GKN Driveline secures global dominance with completion of £280m deal
BIRMINGHAM-based GKN subsidiary GKN Driveline has said the completion of a multi-million pound acquisition has cemented its position as the global leader in the engineering and manufacture of All Wheel Drive Systems and eDrive Systems.
The £280m takeover of German group Getrag was targeted specifically to enhance GKN’s position in this important automotive sector. The firm has estimated that by 2016 the AWD sector will account for nearly 30% of its business.
“This is a very exciting move in the strategic development of our driveline offering for vehicle manufacturers around the world,” said Jim Voeffray, sales and marketing director of GKN Driveline.
“We now offer sector-leading engineering and manufacturing capability for vehicle manufacturers at a time when sales of crossover and AWD vehicles are booming: estimates suggest a sales growth of 30% in the next three years. It also adds to our already market leading portfolio of systems for hybrid and electric vehicles”
GKN Driveline’s existing AWD capability has seen the company secure Tier 1 supply contracts for vehicles as diverse as Nissan’s GT-R supercar and Dacia’s budget vehicle, the Duster, where in both instances GKN provided leading-edge engineering capability as well as the supply of advanced technology components.
A fast growing technology in GKN Driveline’s eDrive Systems is for hybrid four-wheel-drive vehicles as exemplified by the recently launched Peugeot 3008 and Citroën DS5 HYbrid4 models. GKN Driveline provides the rear eDrive axles for these new Peugeot Citroën hybrids.
“With the addition of Getrag’s driveline products engineering and manufacturing capability, the enlarged GKN Driveline has become a global leader in the technology, manufacture and vehicle integration of AWD and eDrive systems,” said Rob Rickell, global engineering director.
“GKN Driveline now offers vehicle manufacturers an unrivalled premium service spanning all aspects of the technology from final drive, power transfer and torque-vectoring units, limited slip differentials, AWD couplings, AWD disconnects, eTransmissions, eAxle, sideshafts and propeller shafts.”
From a marketing perspective, the combination provides GKN Driveline with a more balanced global footprint – where GKN Driveline’s AWD business is primarily in Asia and Getrag is strong in North America and Europe.
“The acquisition will accelerate the growth of our capability for AWD and hybrid/electric drivetrains around the globe,” added Mr Voeffray.
“We estimate that by 2016, our AWD business will account for nearly 30% of our driveline business.”
In addition to its German base, Getrag also has operations in Sweden and the United States. The completion of the takeover sees 1,500 workers join GKN Driveline. For 2010, Getrag driveline products achieved sales of £380m.
