American Axle invests $15M in venture capital firm as part of electrification push

Driveline supplier American Axle & Producing Holdings Inc. stated it invested $15 million in Silicon Valley undertaking cash company Autotech Ventures, as the Detroit business looks to strengthen its electrification company.

American Axle explained in a Wednesday assertion that its financial commitment provides the corporation publicity to startups that are functioning in electrification, connectivity and autonomous engineering. The provider mentioned it will request options to lover with those people companies to enhance its existing electrification and mobility company.

“AAM and Autotech share a determination to acquiring the following generation of mobility businesses focused on electrification and expansion,” American Axle CEO David Dauch mentioned in the statement. “We seem ahead to performing with Autotech and the new know-how companies that will even more progress AAM’s do the job in bringing the potential of mobility more rapidly.”

The investment decision comes as set up suppliers and automakers more and more glance to husband or wife with tech startups and other newcomers to the market to leverage their engineering and skills.

Autotech Ventures describes alone as an early-stage undertaking capital company with a emphasis on corporations devoted to “resolving ground transport problems associated to connectivity, autonomy, shared-use, electrification and digitization of company.” Autotech Ventures explained it is generally eager to make preliminary investments in businesses of concerning $1 million and $8 million, and it has additional than $400 million underneath administration today, according to the statement.

American Axle, which is thanks to report its fourth-quarter fiscal benefits on Friday, ranks No. 47 on the Automotive News list of the top rated 100 worldwide suppliers, with throughout the world sections profits to automakers of $4.71 billion in 2020.