Chinese automaker Geely has signed a deal to set up an automatic transmission joint venture with Japan’s Aisin AW.
The joint venture has a registered capital of 117 million U.S. dollars, according to the agreement. Aisin AW, the world’s largest maker of automatic transmissions, holds a 60% stake and Geely Luoyou Engine Co. holds the remaining 40%.
According to Geely, the plant with a designed annual production capacity of 400,000 six-speed automatic transmissions, is scheduled to start mass production in 2020.
Geely already owns the Australian based DSI (Drivetrain Systems International) since 2009, however the carmaker said its current transmission production capacity cannot meet its growth demand, and the joint venture could offer more high-performance transmissions.
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An Conghui, president of Geely, said the joint venture will help Geely improve its research and development and manufacturing capacity in the advanced powertrain field. The two will establish a long-term and strategic partnership to further explore technology development and application cooperation.