Shanghai, January 23, (Gasgoo.com)--Shanghai Automobile Gear Works (SAGW), a subsidiary of Shanghai Automotive Industry Corporation (SAIC) signed a cooperation agreement with Brilliance Group today in Beijing.
Under the agreement, the two companies will work together to produce transmissions for sedan vehicles and develop Double-clutch Transmissions (DCT) technology, according to local media reports.
Both parties will increase investments in their current joint venture--Shenyang SAIC-Jinbei Transmission Co., but the exact figure for the new investments remains unclear. Both sides believed that DCT technology represents the future of China's automatic transmission market, which is now dominated by international players.
After the new investment, each party will hold a 50 percent stake in the joint venture.
The joint venture will have an annual capacity of half a million transmissions, of which 100,000 will be automatictransmissions (AT). Currently Chinese brand automakers still lag behind foreign competitor as regard of the AT technology.
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