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Grede Producing Brake, Transmission Parts for New GM Trucks

July 23, 2012
Up to 1 million K2XX pickups/year to feature calipers, control arms, and differential carriers and cases

Grede Holdings LLC reports that it has landed supply contracts with Tier One suppliers to General Motors Corp. for its new-model pickup trucks, the K2XX platform that includes the Chevrolet Silverado, Tahoe, and Suburban, as well as the GMC Sierra and Yukon, and the Cadillac Escalade. The components that Grede foundries will supply include brake calipers, control arms, and differential carriers and cases.

Close to 1 million K2XX platform trucks will be assembled at GM plants in Arlington, TX; Fort Wayne, IN; Flint, MI; and Silao, Mexico.

The full value of Grede’s supply contracts is not known, but the ferrous foundry group indicated its contribution to each truck is worth approximately $150.00.

Grede Holdings LLC produces ductile, gray, and specialty iron castings for automotive, truck, and industrial markets. A 2010 merger of Grede Foundries Inc. and Citation Corp. established the company, and several subsequent acquisitions increased its size and reach. It now has 17 foundries in the U.S. and Mexico.

Several different Grede foundries will produce the K2XX parts for delivery to various Tier One suppliers in North America.

“We are very excited about expanding our relationship with General Motors and the Tier One suppliers for this platform, which is one of the top selling in North America, year-in-and-year-out,” said Tony Lovell, Grede Holdings v.p. of global sales and marketing. “We have a long-standing relationship with General Motors and supplied similar content on the predecessor T900 platform.”