Jatco to make continuously variable transmissions in Guangzhou

GUANGZHOU -- Japanese transmission manufacturer Jatco Ltd.'s Guangzhou plant will start trial production of continuously variable transmissions (CVTs) in August. The plant will only produce CVTs fitted to cars with 2.0-liter engines initially.

At present, Jatco's parent company Nissan Motor Co. is exporting Jatco's CVTs from Japan to China for its cars built in Dongfeng Nissan Passenger Vehicle Co., a joint venture between Nissan and Dongfeng Motor Corp.

To increase Nissan cars' local content and reduce their production costs, Jatco started building a plant in the south China city of Guangzhou in late 2007.

Jatco's Guangzhou plant is now poised to start operation ahead of schedule. Last year, the company said the plant would be put into operation in mid-2009.

Sources with the administrative office of the Guangzhou Development District, where the Jatco plant is located, say construction of the Jatco's Guangzhou plant will soon be completed.

Trial CVT production will start in August while mass production is expected to begin in two to three months, they add.

The Guangzhou plant is Jatco's second overseas production site, following one in Mexico. Designed output capacity is about 140,000 units per year.

A manager from Jatco says the Guangzhou plant will only produce CVTs fitted to front-wheel-drive cars with 2.0-liter engines in the beginning.

"That means Nissan still needs to import CVTs from Japan for its cars that do not carry 2.0 liter engines," the manager says.

He says the plant will produce other types of CVTs later to supply the full line of cars built in Dongfeng Nissan. But he does not say when.

The manager also says Jatco's Guangzhou plant will only supply CVTs to Dongfeng Nissan initially. In the long term, it may also supply China-based joint ventures of other global automakers.

Jatco is based in Fuji city, in Shizuoka prefecture west of Tokyo.

Jatco did not reply Automotive News China's inquiries about the CVT production in its Guangzhou plant.