AUBURN HILLS, MI — GKN Driveline has acquired full ownership of Celaya, Mexico-based Velcon, a joint venture company formed in 1979 by GKN and Grupo DESC, one of Mexico’s largest industrial companies. GKN has held a 49 percent share in the joint venture since it was established in 1979.
With forging, machining and assembly operations employing 623 people, Velcon has produced more than one million side shaft vehicle sets last year for DaimlerChrysler, Ford, General Motors, Renault-Nissan and Volkswagen, as well as for the automotive aftermarket.
The new GKN Driveline operating unit will be called GKN Driveline Celaya.
“This is an important step in the realization of our sideshaft manufacturing strategy,” says Arthur Connelly, CEO, GKN Driveline Driveshafts. “Taking full control of Velcon will build on our successful joint-venture relationship with DESC and enable us to fully integrate Mexico into our global supply chain.”
For more information about GKN Driveline, visit: www.gkndriveline.com.
Click here to view the rest of today’s headlines.