GKN Driveline starts production at new plant in Mexico

US-based automotive driveline supplier, GKN Driveline has started production at its state-of-the-art manufacturing facility in Villagran, Mexico. The new US$ 17.5 million (Rs 117 crore) facility will serve Mexico‘s fast-growing automotive sector apart from the local and global demand for all-wheel drive (AWD) vehicles.

The company held the groundbreaking ceremony of the plant in October last year.

Commenting on the occasion, Phil Swash, CEO, GKN Driveline said, “The increasing worldwide demand for all-wheel drive vehicles is driving growth for GKN’s lightweight, high-performance driveline technologies. GKN is introducing innovative propshaft designs that save weight, increase efficiency and that make vehicle integration simpler. This expansion of GKN’s existing footprint in Mexico strengthens the company’s position as the leading driveline system supplier for global vehicle platforms and will also enable us to support further growth in Mexico’s automotive sector.”

The 12,000 square metre site is GKN Driveline‘s second plant in Villagran, based in the central state of Guanajuato, a centre for automotive manufacturing. The facility will produce a new type of higher performance propshaft, the GKN VLi, which is faster to assemble and can operate at higher rotational speeds.

The facility will produce up to 1 million propshafts per year and will serve customers including Audi, BMW, Fiat Chrysler Automobiles, Ford, Honda, Mazda, Nissan and Volkswagen. Employing 380 people, the plant also houses new constant velocity joint machining facilities, as well as a new propshaft painting line.

Fidel Otake, GKN Driveline director for Mexico, said: “With the start of production on these new lines in Villagran, GKN’s long-standing operations in Mexico are entering a new phase. This investment brings the latest technology to market in Mexico, strengthening the support we provide to an increasing number of automakers and global programmes with local production here.”

GKN Driveline established a presence in Mexico in 1979 and now employs 2,075 people across its three plants.