Aluminum diecaster Contech U.S. has earned a supply contract from American Axle & Manufacturing for various castings used on General Motors Corp. platforms, for which AA&M is a supplier. Specifically, Contech will supply axle carriers and covers for the GM Epsilon II platform.
Epsilon II is a line of front-wheel and all-wheel drive cars that will be introduced for the 2009 and 2010 model years. Some examples will be the 2009 Saab 9-5 and 2010 Buick LaCrosse. According to Contech, its supply is valued at $6.7 million in new sales.
Also, Contact will take over a line of business originally assigned by AA&M to a “failed supplier”: this includes the axle carrier, cover and two disconnect housings used on the GMT- 360/370 platform SUVs (Chevy TrailBlazer, GMC Envoy, and Oldsmobile Bravada); and the adjuster nut housing used on the GMT-900 platform (full-size pick-ups and SUVs.) This business is valued at $7.1 million in immediate sales.
Contech explains it was able to take over existing tooling, modify it for its own equipment, produce samples of all five parts, and receive production approval from AA&M in 10-14 days. These castings are being produced at Contech plants in Auburn, IN, and Dowagiac, MI.
"This is an important award for a valued customer as we focus our efforts on expanding our casting presence in the high integrity aluminum axle market," stated Mark Hunter, Contech president.
Contech U.S., L.L.C. was acquired in April 2007 by Marathon Automotive Group from SPX Corp. for $146 million. The company produces and machines nonferrous diecastings, and develops "proprietary and innovative metal-forming process technologies," which allows it to offer advanced solutions to automotive industry customers. Contech also produces forged steel automotive components, and fabricates tubular steel components.
Contech Awarded Sourcing Agreement by American Axle
Diecaster producing components for GM platforms