VW AG has announced that will spend 400 million euros (USD508 million) to start producing fuel-efficient DSG double clutch transmissions in China.
The German car maker said the production of direct shift gearboxes in China is significant and will help it improve fuel efficiency by 20 percent on all Chinese-made models by 2010. Along with a turbo-charging engine, the power package could offer more power while using less fuel and reducing vehicle emissions.
In a first phase, VW plant in Dalian will produce 300,000 units of the seven-speed DSG transmission a year and capacity will gradually be expanded to a maximum of 600,000.
Dalian is the second plant worldwide to build DSG transmissions after Volkswagen Kassel, the lead plant for transmission production in Europe.