MARYSVILLE, Mich. — Chrysler and ZF Friedrichshafen AG have formed a new axle manufacturing alliance. The partnership will utilize Chrysler’s new Marysville (Mich.) Axle Plant to build three families of state-of-the-art axles for improved fuel efficiency.

Included in the program is a family of front-wheel-drive axles and a family of rear-wheel-drive axles based on proprietary ZF designs and a Chrysler-designed rear-wheel-drive axle. The company said this will consolidate the number of axles used on the company’s vehicles for greater economies of scale.

The Chrysler/ZF axle-making partnership, contingent on state and local incentives, ensures the retention of Chrysler employees and anticipates a phased changeover from current Detroit Axle-centered operations. The Marysville facility is currently under construction, on schedule, with a target production launch in early 2010. The 700,000 square-foot plant is expected to produce approximately 500,000 axles a year.

Terms of the agreement were not disclosed.