Chrysler LLC is in talks with the German axle maker ZF Friedrichshafen AG to operate the automaker’s new axle plant in Marysville, Michigan. The plant is under construction now and it is expected to be operational in 2010.

According to sources, the $700 million Marysville axle plant would replace Chrysler’s Detroit Axle and would probably use a modified Mercedes axle-making technology, which will generate less internal friction, improving fuel economy. The new plant is part of the $3 billion investment, that Chrysler announced in April 2007 to produce more fuel-efficient V6 engines and other related components.

ZF is one of the world’s largest auto parts makers, that produce transmissions, steering systems, axles and chassis components. It supplies axle to the Mercedes SUV assembly plant in Vance, Alabama.

This entry was posted on Tuesday, September 16th, 2008 at 4:32 am and is filed under Chrysler. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.