Gasgoo.com (Shanghai August 20) - Despite the controversy its DSG gearboxes have instigated in China, Volkswagen has no intention of abandoning the technology. VW confirmed that it will be building a new transmission factory in Tianjin, Economic Observer News reported today, citing statements made by Shanghai VW officials. Following the establishment of a transmission factory in Dalian, Liaoning, the Tianjin factory is the second in the country that will produce the manufacturer's new generation of DSG gearboxes. Construction on the site is scheduled to begin later this month.
According to the managerial committee in charge of the Tianjin Economic-Technological Development Area (TEDA), plans to construct a new factory in the city were decided upon in May of this year. The factory will be located in the western region of TEDA, one of the officials said. Japanese auto part manufacturer Aisen Seiki and Korean tire producer Kumho both have production sites in the region. Additionally, both FAW Group and BYD are investing in building new sites in the area.
Much like its Dalian factory, officially known as Volkswagen Automatic Transmission, the Tianjin site is a fully independent venture on the part of VW China. Recruitment for the new site has reportedly already begun. VW has invested a total of 927 million euros ($1.14b) in the site, which will be responsible for producing the DQ380 and DQ500 DSG transmissions.
According to Der Spiegel, the DSG controversy in China has cost VW at least 400 million euros ($491.52m). VW China previously attempted to placate consumer dissatisfaction by extending warranty coverage. However, this move caused even more problems.
