Chrysler Negotiates with ZF for Axle Production

Both Chrysler and German supplier ZF Friedrichshafen have confirmed that negotiations are under way regarding the possibility of ZF taking over axle production at Chrysler’s new plant in Marysville, Michigan.

Both companies confirmed that talks were taking place, but also stressed that there is not yet an official agreement.

This is continuing a trend in the last few years of Chrysler shifting more of its production to its suppliers. The plant will replace Chrysler’s Detroit Axle facility, and ZF would be entirely responsible for building axles.

Chrysler aims to open the plant in 2010.

Source: Detroit News