ATC Drivetrain

ATC DRIVETRAIN

SUSTAINABLE REMANUFACTURING SOLUTIONS GO ELECTRIC Powered by Inside America

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ATC DRIVETRAIN

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SUSTAINABLE REMANUFACTURING

SOLUTIONS GO ELECTRIC ATC Drivetrain is a world leader in remanufacturing powertrain and drivetrain solutions. The company’s work includes the remanufacturing of batteries, electric drive units, engines, transmissions, and transfer cases for ICE, Hybrid, and Electric Vehicles. Hannah Barnett spoke to VP of Global Sales & Marketing George Kostopoulos and VP of Global Engineering Al Victoria to learn more.

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ombining a rich legacy of automotive remanufacturing with a progressive approach, ATC

Drivetrain is oriented towards the future of the industry – and the planet.

“Remanufacturing is the most sustainable form of manufacturing,” said VP of Global Sales & Marketing George Kostopoulos.

“We extend the lifecycle of a product by reclaiming parts that can be reused, replacing only worn-out parts, and then certifying that the item achieves the original OE specifications.”

There are often additional environmental benefits to the remanufacturing process, where energy is saved by reusing components rather than allowing them to go to waste. For instance, a transmission case that is still in good working order can be

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cleaned, tested and reassembled, saving

didn't really focus on the environmental

the cost and energy required to melt down

savings,” said Mr. Kostopoulos. “With the

to cast a new case. Through their remanu-

drive to reduce the impact of climate

facturing process, ATC Drivetrain salvages

change, there has been more attention

over 80% of core material by weight.

towards these environmental benefits.”

In 2019, the company pivoted to reflect

2019: a pivotal year

an automotive industry that was shifting

Headquartered in Farmington Hills,

to EV adoption. Its engineers had to develop

Michigan, ATC Drivetrain has spent almost

a new skill set to remanufacture the key

nine decades focused on remanufacturing.

components within an electrified vehicle,

But recently, with a growing environmental

alongside continued work on traditional

awareness and push for sustainability, the

ICEs. At the same time, the company set its

work the company does has taken on a

sights on becoming a more international

new light.

operation, with considerable success.

“We've been doing this for 85 years,

“Prior to 2019, we were basically a North

and for the majority of that time, people

American company, serving OE manufac-

appreciated the commercial benefit of

turers,” Mr. Kostopoulos said. “Now we are

an extended lifecycle that was made

a global company, serving multiple channels,

possible through remanufacturing, but

with multiple products.”

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ATC DRIVETRAIN

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ATC Drivetrain is now strategically located across three regions that reflect its customer base: the Americas, Europe, and Asia-Pacific. “We have over 1,600 employees in 16 sites worldwide, including the United States, Germany, the United Kingdom, and China,” said Al Victoria, VP of Global Engineering. “Our facilities are equipped with state-of-the-art equipment, from machining, to testing, to assembly processes that mimic the OE operations.”

With an inventory of over 2,000 different part numbers, ATC Drivetrain now ships to close to 100 customers around the globe.

Moving into EVs With the rise of the electric market, ATC Drivetrain has sought to diversity its product portfolio. Its acquisition of Global Battery Solutions (GBS) in 2022 was therefore a significant move. Based in Michigan, GBS is a company providing world class battery life cycle management and EV component services.

Operating from an 80,000 square foot manufacturing facility, GBS has an established history of strong relationships with OEMs, a technically innovative culture, and a strong capability in energy storage systems and energy grid interface.

“Through our acquisition of GBS, we have gained momentum in both BEV remanufacturing projects and second life battery applications, actively contributing to the circular economy of batteries,” said Mr. Kostopoulos. “Additionally, this

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acquisition has provided us with an expanded footprint in the Midwest, a critical hub for EV development.”

As part of a long term plan, ATC Drivetrain has made subsequent acquisitions, such as Treharne Engineering, EV Recycling, and EV Marine in Wales, and Mack GmbH in Germany, further reinforcing its commitment to driving innovation and growth in the EV industry. These partnerships are strategic and have proved mutually beneficial for both parties.

“GBS and Treharne possess extensive knowledge of EVs, batteries, and black mass recycling,” explained Mr. Kostopoulos.

“ATC Drivetrain, on the other hand, brings an industrial mindset, robust capacity, and the ability to scale up rapidly. We excel in addressing crucial challenges such as quality control across 2,000 different parts and tracking the pedigree of each component to distinguish between new and reclaimed elements.

“Our recent acquisition of Mack GmbH has both strengthened and expanded those capabilities. This is the invaluable advantage we offer OEMs, driving our shared commitment to sustainability and innovation in the automotive industry.”

Leading the sector With EVs, the company is operating in a sector that is extremely new, where the technology is rapidly changing. According to Mr. Victoria, the strength of the team at ATC Drivetrain is vital when navigating

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ATC DRIVETRAIN

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potential issues: “The EV market is a bit like the Wild West. Changes in technology create complexity. That keeps us extremely busy because we must keep up with not only current trends, but the older technology, in order to provide a comprehensive solution for the customer.

“However, our team's ability to find innovative solutions and alternative source components has been instrumental in navigating the challenges presented by the industry's transformation.” The company has a specialised department for reclamation, sourcing and any issues with the supply chain.

ATC Drivetrain maintains its competitive advantage at least partly due to the sophistication of its remanufacturing process: “We focus on highly complex parts like transmissions, engines, EV batteries, and electric drive units,” said Mr. Kostopoulos. “These components are a significant part of the value of a vehicle.”

Additionally, the company designs and builds its own test equipment and cleaning systems for all types of propulsion systems, from ICE to full BEV products, providing a depth of verticalization and a broad product portfolio.

“As the electrification market matures, the industry has a steep learning curve on how to repair and recycle batteries.” explained Mr. Kostopoulos. “Our system experience, combined with our proprietary equipment and software, allow us to deliver

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remanufactured batteries of the highest pedigree. While I respect and welcome competition, what we offer our customers surpasses anything else available in the market.”

“It really goes back to our strategy,” agreed Mr. Victoria. “As one of the few global remanufacturers around, most of our customers are international, and we provide them all with the same level of service. Most other remanufacturers don't have that reach, and we compete on multiple levels of distribution.”

ATC Drivetrain remains committed to moving forward with its long term strategy and developing a full range of products and processes to completely support every stage of the battery lifecycle.

“Our ultimate goal is to work relentlessly towards becoming the supplier of choice, globally, for all types of powertrain and drivetrain systems,” Mr. Victoria said.

For Mr. Kostopoulos, it is a truly xciting time to be part of such a dynamic, rapidly evolving industry. “Implementing our strategy and witnessing the transformation first hand is fascinating,” he concluded. “As we expand globally, we are committed to driving positive change in the automotive industry by providing sustainable solutions and reducing our environmental impact through remanufacturing. Alongside our partners and customers, we aim to create a greener future.”

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