VW Builds New Transmission Factory in Tianjin, China image

VW plans to build a new transmission factory in Tianjin, China, investing 900 million euro.

Even if the automaker’s DSG gearboxes are surrounded by controversy in China, VW does not plan to abandon the market. It recently announced its plans to build a new transmission factory in Tianjin, China, the second after the transmission factory in Dalian, Liaoning. The plant will manufacture the new generation of DSG gearboxes and production will begin at the end of this month.

Tianjin Economic-Technological Development Area managerial committee announced that the decision to build a new plant was taken back in May and that the facility will be located in the western region of TEDA. Both Aisen Seiki, which is a Japanese auto part manufacturer, and Kumho, the Korean tire producer, have plants in the region. This means that both BYD and FAW are investing to build new facilities here.

The Tianjin plant, part of VW China, is a fully independent venture and recruitment for the facility has already begun. The automaker has invested 927 million euro ($1.14b) in the factory which will manufacture the DQ380 and DQ500 DSG transmissions.