DCT technology is the future trend in China

BorgWarner DualTronic Transmission Systems Co., Ltd is a JV between BorgWarner (China) Investment and China Automotive Development United Investment (CDUI) with the equity ratio of 66:34 between the two companies. CDUI is an OEM consortium with 12 member companies: FAW, SAIC, DFM, Changan, Chery, Brilliance, JAC, Changfeng, Geely, GAIC, Paulson and Great Wall.  The JV will manufacture and develop core modules for the DCT assembly such as dual clutch modules, torsional vibration dampers and control modules. And these modules will be produced using the world's most advanced manufacturing process and know-how from BorgWarner. The following is our exclusive interview with Tom (Yuesheng) Tan, BorgWarner China president of DCT application in China.

Gasgoo.com: Could you explain why the DCT technology is adopted by Chinese market?

Tom (Yuesheng) Tan: BorgWarner DCT technology was first used on Audi TT in 2003, and became famous when DCT-used models were rolled out successively by BorgWarner and Volkswagen cooperatively. DCT technology has achieved enormous market success since its first commercial launch in 2003 and has been leading the world automatic transmission trend. The DCT provides vehicles with both excellent energy efficiency and driving comfort; it saves up to 15% of fuel consumption compared to the traditional AT, and its outstanding smoothness sets it apart from other automatic transmission solutions. It is worth pointing out that the DCT can cover the widest range of engine torques and vehicles; it can be used in the racing vehicle with more than 1000NM torque as well as in the compact car with the engine of only 1.0L displacement.

In addition, the JV's Chinese partner -China Automotive Development United Co., Ltd is established, under the coordination of the NDRC, by the China's 12 most influential OEMs (FAW, SAIC, DFM, Changan, Chery, Brilliance, JAC, Changfeng, Geely, GAIC, Paulson and Great Wall). Therefore these 12 OEMs can obtain products of cutting-edge technology with shared R&D costs, avoid repetitive investment and to achieve the win-win for all.

Gasgoo.com: Someone doubts whether BorgWarner products are suitable and beneficial for Chinese OEMs. As we know, the DCT now are widely used on mid- and high-class vehicle models, but Chinese independent brands are mainly low and mid-class models.

Tom Tan: when a new technology comes out, it can not be used on the lowest level cars but will experience a process of expanding its use range. Due to high investment, the new technology will stand out only after it is widely adopted.

Why is the DCT first used on mid- and high-class models? That is because the DCT technology started first application in the European market. Based on a market manual transmission widely used, DCT was successfully developed by making use of MT technology accumulation, including design, manufacturing, application and advanced Electronic Control Hydraulic and software technology. The DCT also has every vehicle individualized through software and calibration. For example, the same DCT module can make a car driving like racing or smoothly like a sedan.

European consumers generally favor sports features and they are sensitive to fuel economy due to high fuel prices in Europe. The DCT provides the vehicle with both excellent energy efficiency and driving comfort; meanwhile, the cost is relatively low because of using MT' asset stock and technology accumulation, so it's quite natural for the DCT to first bear fruits in Europe and then expand to other markets. Emerging markets such as China, which has a basis of MT but less AT, has quite an opportunity to develop DCT.

Independent Chinese automakers are particular sensitive to cost. We have been making efforts to save the cost these years but the real cost lies in the imported products since we haven't our own automatic transmission technology. The DCT enjoys high superiority over other automatic transmissions (not including AMT, for it's not real AT in strict sense) in both energy efficiency, driving comfortableness and investment. Therefore, we say the DCT is the future trend.

Gasgoo.com: Rumor says that Bosch has also considered building a JV with Chinese OEMs like CDUI, but failed at last. Who on earth suggests the CDUI? Since this kind of cooperation is seldom seen in China, how do the participants respond to the outside doubt?

Tom Tan: It depends on the market demand, which is generally approved by many Chinese OEMs, so the suggestion went along well when it came out. The JV cooperation was signed early on Nov. 25 by BorgWarner and other OEMs.

Gasgoo.com: Analysts say it's unfair for wet-clutch supporters to criticize that dry-clutch DCT is less efficient and mature than Wet clutches? How should BorgWarner's dry-clutch DCT prove it's better than other technologies?

Tom Tan: We couldn't say whose technology is better or not. The practice will test and prove a technology when it comes out to be used commercially.

Since its first commercial launch in 2003 BorgWarner DCT technology has been leading the world automatic transmission trend over five years. More than ten vehicle models now use the BorgWarner DCT.

Most people see that Volkswagen car models with large horse power use the wet-clutch DCT and models with small horse power are planning to adopt the dry-clutch DCT, and they are likely to believe the dry-clutch DCT is proper for small models while the wet-clutch DCT for larger ones. In fact, it's a misconception. BorgWarner CEO Tim Manganello has said the latest BorgWarner DCT technology will be first introduced to the Chinese market, and then the stereotypes will dissolved when its new wet-clutch DCT is used on models such as 1.0L QQ (the dry-clutch DCT can't be used due to its big volume).

Gasgoo.com: Could you predict BorgWarner DCT's market share and when it will be delivered into use?

Tom Tan: The first model mated with BorgWarner DCT --- we have announced -- will be the SAIC Roewe in the second half of 2010. It is a long time cause. Every AT needs three years generally from development to delivery.