It seems manufacturing axles is no easy feat, what with the two-month long American Axle strike crippling GM’s production and now come reports of Chrysler trying to quietly sell off its two Michigan-based axle plants. The automaker is trying to cut costs, and outsourcing production of major components is its latest effort towards that goal.
Chrysler has approached privaty equity groups as well as Dana and American Axle with a sale price of about $400 million for the pair in the last two months, according to a report in The Wall Street Journal. One of the plants is still under construction in Marysville and was meant to replace Detroit Axle, which is due to close.
The reports say the offer has netted little interest, reasons for which may include the complications involved in having to work out a deal with the UAW for shuttering Detroit Axle.
The change in strategy have been brought on since Cerebrus bought the automaker, and hired on Robert Nardelli and VP Jim Press to head the now privately-owned company.
