BorgWarner builds DCT JV with China carmakers

Shanghai, December 3 (Gasgoo.com) BorgWarner Inc has recently announced the establishment of a joint venture (JV) company with a group of Chinese automakers in the city of Dalian, auto industry website Gasgoo.com reported.

The U.S.-based company will join forces with China Automobile Development United Investment Co, or Zhongfalian Investment Co, co-founded by 12 major Chinese automakers, to produce key modules for its dual-clutch transmissions. With an investment of 1.38 billion yuan ($200.8 million), the venture will have an annual production of 1.5 million units by 2020.

The 12 Chinese automakers are: Shanghai Automotive Industry Corp. (SAIC), China FAW Group Corp., Chery Automobile Co., Dongfeng Automobile Co., Guangzhou Automobile Group, Chongqing Changan Automobile Co., Geely Automobile Co., Changfeng Group., Great Wall Motor Co., Shenyang Jinbei Automotive Co., JAC Motor and Polarsun Motor Co.

The new venture will be 66 percent owned by BorgWarner while SAIC and FAW each own 20 percent of the venture. The remaining 60 percent is divided among the other 10 Chinese automakers.

Currently automakers in China import 10 billion yuan worth of traditional auto transmissions per annum. The joint venture is expected to help Chinese automakers master the know-how of producing advanced automatic transmissions and meantime boost BorgWarner's market share in China.

Globally BorgWarner's dual-clutch transmissions are being used in such car models as VW Golf, Touran, Beetle, Passat, Audi A3, TT sports car, Bugatti Veyron, Nissan GR6, BMW M3, etc.