GKN Driveline Customers Benefit From Recent Acquisition

GKN Driveline’s recently-completed all-wheel-drive acquisition (AWD) positions the company as the only driveline automotive supplier capable of providing complete driveline systems to its customers.

The acquisition added geared driveline products including power transfer units (PTU), rear drive units (RDU) for AWD vehicles and final drive units (FDU) for high performance rear-wheel-drive vehicles to GKN Driveline’s product portfolio.

The $440 million acquisition, which was completed last October, included manufacturing plants in Koping, Sweden and Newton, N.C., as well as engineering facilities in Cologne, Germany and Sterling Heights, Mich. Approximately 1,500 employees were added to GKN Driveline’s worldwide workforce.

“The acquisition now allows us to provide our global customers with ‘one-stop’ shopping for our leading-edge products by offering complete driveline systems — from the transmission differential all the way through to the wheel-end,” said Dr. Ray Kuczera, vice president of engineering for GKN Driveline Americas. “We can now offer greater value to our customers with driveline systems that eliminate components, reduce interface complexity and provide packaging benefits, while at the same time taking sole responsibility for the entire driveline integration.”

In addition to a complementary geographical and customer footprint, the acquisition gives GKN Driveline the ability to support customers with state of the art AWD and eDrive systems technology including a next generation of fuel-efficient driveline systems.

“It is amazing how the technologies developed by the two companies complement each other so perfectly with almost no overlap,” commented Robert Genway-Haden, GKN Driveline’s all-wheel drive global product technology director. “We have been able to strengthen our existing position in AWD disconnect and torque vectoring technology and to realize further opportunities for the integration of GKN Driveline’s CVJ joint, AWD coupling and differential technologies into axle and PTU products.”

The acquisition also provided important manufacturing technology to GKN Driveline in the Americas, including ground hypoid gear manufacturing, advanced vacuum carburizing and single piece flow assembly.

“Combining the world-class Newton plant into GKN Driveline’s existing manufacturing facilities in North Carolina and Ohio enables GKN Driveline to both develop and produce complete driveline systems in North America,” said Jochen Wieland, managing director for AWD Systems and Trans Axle Solutions. “The synergies resulting from merging our supply chain and commercial functions further enhances the value that we can provide to our customers.”

The acquisition also accelerates the growth of the company’s capability for AWD and hybrid/electric drivetrains globally which will account for nearly 30 percent of its driveline business by 2016.

In addition to its market-leading positions in AWD Systems, GKN Driveline’s product segments include: CVJ Systems; Trans Axle Solutions and eDrive Systems.

About GKN Driveline

GKN Driveline is the world’s leading supplier of automotive driveline components and systems. As a global company serving the world’s leading vehicle manufacturers, GKN Driveline develops, builds and supplies an extensive range of automotive driveline components – for use in the smallest ultra low-cost car to the most sophisticated premium vehicle demanding the most complex driving dynamics.

GKN Driveline is a leading global producer of CVJ Systems, AWD Systems, Trans Axle Solutions and eDrive Systems and operates in 23 countries at 57 locations employing 22,000 people.

www.gkndriveline.com

About the GKN Group

GKN plc is a global engineering business serving mainly the automotive, aerospace and land systems markets. It has operations in more than 35 countries, around 44,000 employees in subsidiaries and joint ventures and had sales of $9.5 billion in the year to 31 December 2011. GKN plc is listed on the London Stock Exchange (LSE: GKN).

www.gkn.com

GKN Driveline’s product segments include:

CVJ Systems

GKN Driveline’s constant velocity joint systems provide space, weight and fuel savings with greater all round efficiency.

— GKN Driveline supplies the most extensive range of CVJ systems – used in
the smallest ultra-low cost car through to the most sophisticated
premium vehicle.

AWD Systems

— GKN Driveline has full all-wheel drive systems capability.
— GKN Driveline’s all-wheel drive couplings improve vehicle handling,
stability and traction by intelligently distributing power, and
disconnecting technology can supplement low drag and inertia for
ultimate efficiency.

Trans Axle Solutions

— GKN Driveline produces highly durable open differentials and has the
most extensive range of limited slip differentials (LSD), from the
smallest super LSD to the largest electronically controlled axle locker.
— For the ultimate capability, GKN Driveline’s torque vectoring solutions
provide the answer.

eDrive Systems

— GKN Driveline’s pioneering electric drive technology is used in 250,000
vehicles today.
— GKN Driveline’s eDrives are designed for the new generation of fuel
efficient, low emission electric and hybrid vehicles.