ThyssenKrupp to Shed Axle-Making Unit

ThyssenKrupp AG plans to sell its automotive axle-making business, sources tell Reuters. They say the German steelmaker has asked French banker BNP Paribas to find a buyer.

The automotive systems unit assembles axles on a contract basis from purchased components. The business generates about €1 billion in sales, but margins are weak, according to Reuters' sources. They say shedding the unit would improve the margins of it parent, ThyssenKrupp's Components Technology division.

The axle-making unit competes with such manufacturers as American Axle, Benteler and ZF.