Magna Drivetrain

Magna International Inc. says it will produce transfer cases for General Motors Corp. fullsize pickups and SUVs at two U.S. plants that will open by 2007.

Magna details the contract and simultaneously announces creation of Magna Drivetrain, the seventh division within Magna. It consists of the former Powertrain unit of Magna Steyr Fahrzeugtechnik AG & Co KG, based in Austria.

“This division has experienced significant growth in recent years and its capabilities rank highly, particularly in the all-wheel-drive market,” says Magna International Executive Vice Chairman Siegfried Wolf. “It was logical to have Magna Drivetrain operate as a separate unit, focused on the growing market opportunities.”

Magna Drivetrain is based in Lannach, Austria, and operates plants there and in Ilz, Austria, as well as Saltillo, Mexico. Its U.S. sales and engineering operation is in Auburn Hills.

The GM contract covers the upcoming GMT900 lineup of fullsize pickups and SUVs that arrive in 2006. Magna Drivetrain already has begun development work on the new transfer case. Current GM trucks use transfer cases supplied by New Venture Gear Inc.

The new contract will require Magna Drivetrain to open two new plants in the U.S.

Production of the new transfer case will start in time for the '07 model year.