NEW YORK (TheStreet) -- Auto component supplier American Axle & Manufacturing ( AXL ) stock was jumping after the company announced a joint venture with Saab Automobile to deliver components that improve vehicle fuel efficiency.

Shares of American Axle & Manufacturing have jumped 4% to $9.20 in late morning trading.

The new company, e-AAM Driveline Systems AB (e-AAM), will engineer, develop and commercialize electric all-wheel-drive and hybrid driveline systems for passenger cars and crossover vehicles, American Axle said in a press release.

The company described the e-AAM systems design as one that would improve fuel efficiency, reduce carbon dioxide emissions and provide vehicle stability.

e-AAM will be headquartered in Trollhattan, Sweden and begin operations on Oct. 1. It will be majority- controlled by American Axle.

e-AAM systems will be featured in the next generation of Saab vehicles beginning in 2012, American Axle said.

American Axle & Manufacturing "is pleased to be launching this exciting new business opportunity with Saab," AAM CEO Richard Dauch said. "e-AAM will leverage the outstanding competencies of both our companies in the development of state-of-the-art electric and hybrid driveline systems needed by global OEMs to improve the fuel efficiency, ride and handling performance and overall capability of their products. "

-- Written by Andrea Tse in New York.

>To contact the writer of this article, click here: Andrea Tse.

>To follow the writer on Twitter, go to Andrea Tse.

>To submit a news tip, send an email to: tips@thestreet.com.

Copyright 2010 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

More from Stocks

Dow Logs Eighth Straight Drop as Stocks Slump

Dow Logs Eighth Straight Drop as Stocks Slump

Novo Nordisk Stock Rises 4% Over 2 Sessions

Novo Nordisk Stock Rises 4% Over 2 Sessions

Stock Market Just Took Another Beating -- Here's What You Need to Know

Stock Market Just Took Another Beating -- Here's What You Need to Know

This Is What's Hot Thursday - Stocks Slide, Intel's CEO Woes & Major Movers

This Is What's Hot Thursday - Stocks Slide, Intel's CEO Woes & Major Movers

Daimler's Profit Warning Should Terrify Traders Before Earnings Season Begins

Daimler's Profit Warning Should Terrify Traders Before Earnings Season Begins