UNTERGRUPPENBACH, Germany, July 28, 2011 /PRNewswire/ — GETRAG today announces its agreement to sell the entire Axle Business to GKN plc, the UK-based global engineering company. At the same time, the co-shareholders Dana Holding Corporation and Volvo Car Corporation sell their respective shares in the corresponding companies. GETRAG’s Axle Business is a Tier 1 supplier for all-wheel-drive and rear-wheel-drive driveline systems solutions. The business is comprised of the companies GETRAG All Wheel Drive AB with the European locations Koping, Sweden and Cologne, Germany as well as GETRAG Corporation with the North American locations in Sterling Heights, Michigan and Newton, North Carolina. Closing of this transaction is expected by the end of September 2011, subject to customary conditions and necessary regulatory approvals.

Additionally, GETRAG is selling to GKN an exclusive license for electric drivetrain technology to be used in electric and certain hybrid applications mainly for the markets in Europe and North America.

The sale is part of GETRAG’s consolidation and globalisation strategy. It contributes to reduce complexity in the shareholder structure of the GETRAG Corporate Group and to create more independence and freedom to concentrate on the global core business of transmission technology. “The demand for our dual clutch transmissions steadily grows in China, Europe and America. We see our future in this technology and want to make sure that we are able to satisfy the growing number of customers,” says Mihir Kotecha, CEO of GETRAG Corporate Group.

“Although our Axle Business came successfully out of the economic crisis and grew steadily ever since, the sale offers a strategic advantage for all parties involved. The employees will have a secure and prosperous future with the new owner,” Kotecha adds. With this acquisition, GKN’s driveline business achieves a global market leader position in this segment.

About GETRAG

The GETRAG Corporate Group is one of the largest system suppliers for transmissions and powertrain systems worldwide with approximately 13,500 employees at 23 locations. The company is headquartered in Untergruppenbach, Germany. The Group develops and manufactures transmission and powertrain solutions for the automotive industry. The transmission portfolio comprises manual, automated manual and dual clutch transmissions. The powertrain portfolio contains axle differentials, power take-off units and torque management systems. GETRAG also offers a range of hybridization and electrification of transmissions and powertrains. In 2010, the Group reached a turnover of 2.6 billion Euros.

www.getrag.de

SOURCE GETRAG Corporate Group