Bosch: reliable partner in CVT for Chinese OEMs

With Chinese automakers growing eager to have its own automated transmission technology, the global suppliers of automatic transmissions (AT), continuously variable transmissions (CVT), dual-clutch transmission (DCT), etc, are pushing for a better market position. What does Bosch, the exclusive provider of CVT pushbelt, do and think about the Chinese market? We had an exclusive interview with Hein Siemerink, project manager of the CVT business unit of Bosch in China.

Gasgoo.com: We can see that the global players including Bosch is aggressively trying to gain more market place in the Chinese transmission market. So what product and service does Bosch-CVT provide?

Hein Siemerink: Bosch is not producing the CVT transmissions itself. Bosch focuses on the mass production of the pushbelt and the delivery of transmission technology know-how of complete CVT systems. This to offer OEMs or Tier1's the opportunity to build their own pushbelt CVT. All pushbelt CVT systems currently available in the market started with such a cooperation with Bosch.

In addition, we cooperate with UAES (joint-venture Bosch-SAIC) to offer locally produced components like control units, solenoids and other parts for various automatic transmissions.

Gasgoo.com: Up to now, Bosch's CVT-related business in China is mainly to sell the core component, the pushbelt; but the licensing of CVT technology and patents or collaboration with Chinese OEMs to develop their own CVT system haven't taken place yet, right?

Hein Siemerink: Not exactly like that. There are already Chinese automakers and transmission makers that develop their own CVT technology. In the first place we deliver belts to them and next to that we discuss also possibilities for support in other areas. So we support them where possible & necessary. Next to that we still are in discussion with Chinese OEMs for complete CVT development projects.

Gasgoo.com: What's the reason for not licensing out your CVT patents yet? Too expansive for the potential buyers?

Hein Siemerink: I think lots of the Chinese OEMs are trying to develop or investigate the feasibility of an own Automatic Transmission. Of course the transfer of state of the art technology which is built on years of experience at our company has a price but we are flexible in offering for examples a part of the technology. We can offer the whole package, but if the costumers wishes, we can also deliver part of it, like for example only the control software or the pulley technology. We ensure our offer and our advice is the right solution to our customer's needs.

Gasgoo.com: Obviously there're several operations of transmission tech in the Chinese market. As a still new and marginal tier-one-and-tier-two supplier of CVT here, what's your comparison with other alternatives?

Hein Siemerink: CVT has a unique characteristic that offers 100 percent smoothness. So it has no shift points. The Continuous Variable Transmission is the only transmission that has no interruption or decrease of traction power. Especially, in city traffic and stop-and-go situations CVT offers great comfort and pleasure. Additionally its continuously variable principle offers an outstanding fuel efficiency performance as well as the best potential for further improvements because it allows the engine to work in its most efficient working point. Our studies show that CVT's fuel consumption reduction potential in the future can be improved with 7 to 10 percent from the current level, which is much higher than other automatic transmission options. CVT fits in the market trends, especially the development of continuously lowering CO2 emissions and fuel consumption.

Also CVT is a mature technology already on the market for some time and also in China with a lot of applications like for example the local OEMS: Chery, Haima and MG but also Mitsubishi, Nissan, Honda and Chrysler are offering various models in China with CVT.

Worldwide we see that most CVTs are used for smaller applications. Although pushbelt CVT technology can also be applied for applications up to 450 Nm it is especially its packaging and weight that makes it most suitable for smaller applications where installation space is a determining factor. Also this flexibility makes it a good transmission that can be combined with hybrid applications.

Gasgoo.com: We've seen the DCT making fast progress thanks to a multi-player joint venture with the government's encouragement. So how do you see the customer relation when doing business in China?

Hein Siemerink: We have a very good relation with our customers worldwide and work together to even further improve the CVT technology. In China we already have a big number of applications in the market. Further Chinese and foreign OEMS and Tier1 suppliers are investing in local CVT production facilities. Therefore we have already proven that the technology is mature and functioning, also in China. To support our customers optimally we are flexible to support our customers in any way to make CVT successful in China.

Gasgoo.com: Good transmission functions well with good engines control capability. For those local automakers that lack in money and tech expertise, how to work with them?

Hein Siemerink: Most local OEMs are working hard to build-up technical expertise in order to "close the gap". Bosch provides the technology expertise for the CVT. Together with UAES we can provide the integration of engine and CVT controls for an optimal drivetrain performance

Gasgoo.com: How can you retain the customers, like the Japanese companies?

Hein Siemerink: Currently for example JATCO, Honda and Toyota are increasing the number of CVTs in the market. For example 50% of the transmissions JATCO now produces is already CVT and Honda keeps on investing in CVT, especially in combination with Hybrid applications in the future.

Bosch continues to develop and improve the belt and also develop new technology on CVT system level. For example the introduction of "self optimizing control" in the near future will lead to less internal loses in the CVT. The CVT technology still has a lot of potential to improve which makes it for the Japanese and also other OEMs interesting to continue to invest in this technology. CVT technology is and will remain very competitive also in the future.

Gasgoo.com: We know Bosch's going to set up its push-belt factory in Vietnam, after the one in Netherlands. The reason why choose Vietnam rather than China?

Hein Siemerink: Our strategy is to have a production location closer to the customer. We forecast CVT will obtain the outstanding growth in Asia till 2015. So, we decided to locate our second manufacturing site in this region. The key markets in here are Japan, China and India. So we looked for a suitable place balance all markets. Vietnam has good circumstances for establishing a production plant and is part of Bosch's global manufacturing network

Gasgoo.com: What's your prospection of CVT application in the upcoming years? Do you have any new market place to develop in the future, like transmission for the electric vehicles?

Hein Siemerink: We are prepared for any application, currently we already have applications for gasoline, diesel, hybrid and if requested we can also apply CVT for electric applications.

In the CVT market you see more and more hybrid applications using CVT. Lots of OEMS are developing hybrids using our CVT technology. Further we keep on increasing the power density of our pushbelt so CVT can be more compact and cheaper. For example we currently have a 140Nm CVT under development, the P070 specially targeting the low cost customers worldwide. We forecast that the annual CVT application in China will reach 1.5 million units in 2015.