Volkswagen launches production of 7-speed gearbox in China

Volkswagen AG has started the production of its seven-speed direct shift gearbox at a plant in Dalian city, Liaoning province, China. The wholly owned automatic transmission plant has a designed capacity of 300,000 units annually to supply VW’s Chinese ventures. The German carmaker said the production of direct shift gearboxes in China is significant and will help it improve fuel efficiency by 20% on all Chinese-made models by 2010. Along with a turbo-charging engine, the power package could offer more power while using less fuel and reducing vehicle emissions. Volkswagen is also considering building a second direct shift gearbox plant in Dalian, which could boost total output to 500,000 units annually by 2012. (May 12, 2010)