Volkswagen AG plans to build a second DSG dual-clutch automatic transmission plant in Dalian, Liaoning Province, according to local media reports. Once in operation in 2012, Volkswage’s annual production of DSGs in China is expected to surpass 500,000 units.
Currently, Volkswagen is talking with its partners in China, FAW and SAIC, about the deal of investment. The new technology enabling a manual transmission to evolve and perform like an automatic transmission, will significantly improve vehicle fuel economy over automatic transmissions.
Local production of DSG transmission is said to be part of Volkswage’s powertrain strategy in China. The company has committed that the average gas consumption of all Volkswagen cars in 2010 would be 20 percent lower than 2005 levels.
Two years ago in 2007, Volkswagen started to build a $400 million transmission plant in the same coastal city of Dalian with a designed capacity of 300,000 units of DSGs. The plant is expected to start production in early 2010.
As is scheduled, the advanced products of 7-speed DSGs will be equipped in vehicles made by both Volkswagen joint ventures under FAW and SAIC.