Investment in Joint Ventures

12 Months Ended

Dec. 31, 2012

Investment in Joint Venture [Abstract]

Investment in Joint Ventures [Text Block]


	INVESTMENT IN JOINT VENTURES

In 2009, we formed a joint venture with Hefei Automobile Axle Co, Ltd. (HAAC), a subsidiary of Anhui Jianghuai Automobile Group Co, Ltd. (JV). In 2011, we made an additional investment of $16.5 million in this JV to expand into HAAC's light commercial axle business. Each party continues to own 50 percent of the JV, which we account for under the equity method of accounting. We recorded both our initial investment of $10.2 million in 2009, as well as our additional investment in the JV in 2011 at cost, and adjusted the carrying amount of the investment to recognize our proportionate share of the earnings of the JV. Our investment is classified as other assets and deferred charges on our Consolidated Balance Sheet.

In 2010, we formed a joint venture with Saab. The new company, e-AAM Driveline Systems AB (e-AAM), engineers and develops electric and hybrid driveline systems to be commercialized for passenger cars and crossover vehicles. In 2012, we paid $4.0 million to acquire the remaining shares of e-AAM from Saab. e-AAM is now a wholly-owned subsidiary of AAM and continues to be a fully consolidated entity.

- Definition

The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group.

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