Increased Demand for All-Wheel Drive Drives Factory Expansion

GKN Driveline breaks ground on Mexico factory.

Robert Willig, GKN Driveline Americas President, addresses employees and attendees at the company's facility opening ceremony.

Robert Willig, GKN Driveline Americas President, addresses employees and attendees at the company’s facility opening ceremony.

Driveline technology provider GKN Driveline is developing a new manufacturing facility in Villagran, Mexico, to introduce premium propshaft production to the country, for a range of automaker customers. 

The facility will accommodate Mexico’s growing automotive sector and the broader growth of demand for all-wheel drive (AWD) vehicles in the Americas.

The 12,000 square meter site is GKN Driveline’s second plant in Villagran, based in the state of Guanajuato. The plant will include Constant Velocity Joint machining facilities and a new propshaft painting line.

The facility is estimated to produce up to one million propshafts per year, serving customers including Audi, BMW, FCA, Ford, Honda, Mazda, Nissan and Volkswagen.

Independent research forecasts that AWD production will increase by 21 percent in North America by 2020 to reach around three million vehicles. GKN’s AWD driveline technology is featured on vehicles such as the Jeep Renegade, Range Rover Evoque and the new Volvo XC90. They are investing in order to increase AWD production capacity globally.

GKN held a ground-breaking ceremony this week to mark the expansion, attended by GKN Driveline Chief Executive Phil Swash, GKN PLC Chief Executive Nigel Stein and the GKN Board. GKN Driveline is investing US$17.5 million in the development of the new facility, which is expected to be fully operational by April 2016.

Fidel Otake, GKN Driveline director for Mexico, added, “The expansion of GKN Driveline Villagran, which is located in a growth region for automotive manufacturing in Mexico, further strengthens our position in this important market. GKN is bringing the latest propshaft and sideshaft production techniques to Mexico, helping our customers make their vehicles lighter and more efficient.” 

Robert Willig, GKN Driveline Americas president, added, “As the global leader in driveline technology, GKN is addressing the key requirements of OEMs and their customers. 

Half the world’s cars are driven by GKN technology and we work with over 90 percent of the world’s automotive manufacturers.

“We lead the market in CVJ driveshafts and fuel efficient all-wheel drive systems. In electric drive we have many more eAxles – electric AWD – on the road than any of our competitors, over 250,000 vehicles and rising. GKN Driveline continues to invest in its business to ensure it can meet the global needs of its customers, as well as to cater for the drive towards global platforms,” Willig continued.

GKN Driveline established a presence in Mexico in 1979 and now employs 2075 people across three plants.

Written by

James Anderton

Jim Anderton is the Director of Content for ENGINEERING.com. Mr. Anderton was formerly editor of Canadian Metalworking Magazine and has contributed to a wide range of print and on-line publications, including Design Engineering, Canadian Plastics, Service Station and Garage Management, Autovision, and the National Post. He also brings prior industry experience in quality and part design for a Tier One automotive supplier.