Köping, Sweden … Ford is continuing the restructuring of its European powertrain operations, with the announcement last week of a new joint venture between Volvo Personvagnar AB, Dana Corporation and its German transmission affiliate, Getrag GmbH & Cie KG. A new Dana/Getrag entity will purchase a 60% stake in Volvo's powertrain operations in Köping, Sweden for the development and production of all-wheel-drive (AWD) and chassis systems for passenger cars and sport-utility vehicles.

"We are tremendously excited about this latest evolution in the Dana-GETRAG relationship and this opportunity to work with Volvo," said Dana Chairman and CEO Joe Magliochetti. "This arrangement will leverage the combined expertise of Volvo, Dana, and GETRAG to serve the burgeoning crossover vehicle marketplace."

The new venture, as yet unnamed, will act as a fully independent supplier within the GETRAG-Group, marketing its services globally to Ford and its affiliated companies, as well as other car manufacturers in Europe. The partners will initially invest over one billion Swedish Krona ($US120 million) to expand annual production capacity for power take off units (PTUs) and axle differential assemblies to 750,000 p.a. from the current 100,000 units.

"The operations in Köping will be streamlined to create a fully integrated self-sufficient AWD Center of Excellence, including RD&E, sales and marketing, purchasing and production of AWD components and assemblies," says Curt Germundsson, Production Director of Volvo Cars.

At present the plant in Köping supplies approximately 150,000 manual transmissions a year to Volvo Cars and this operation will be transferred to GETRAG FORD Transmissions in Cologne towards the end of 2004. Production of chassis components for rear-wheel and front-wheel drive units at Köping will be transferred to the new entity, which intends to pursue new business with other OEMs.