· Geely intends to establish a joint venture with Aisin Seiki to manufacture 6AT gearbox
Shandong Hengyi kaifeng Machinery Co.,Ltd , https://www.xhykf.com
Geely Automobile announced on the evening of 24th that Geely Luoyou, an indirect subsidiary of Geely Automobile Holdings, entered into an agreement with Aisin Seiki subsidiary, and both parties agreed to establish a joint venture to manufacture and sell front-wheel drive 6-speed automatic transmissions and related spare parts. Mass production is expected in 2020. The production capacity is about 400,000 automatic transmissions per year.
According to the announcement, according to the terms of the joint venture agreement, the joint venture company will be owned as to 40% and 60% by Geely Luoyou and Aisin AW respectively. The registered capital of the joint venture company will be US$117 million, which will be 40% in cash by Geely Luoyou and 60% in cash by Aisin AW.
It is reported that the board of directors of the joint venture company includes five directors, two of whom will be nominated by Geely Luoyou, and the other three will be nominated by Aisin AW.
According to the announcement, Aisin AW is a subsidiary of Aisin Seiki, which manufactures and markets automotive transmissions, car navigation systems and hybrid transmissions in the automotive industry in Japan and around the world. It is a world-renowned professional manufacturer of AT and car navigation systems.
Geely Automobile said that in recent years, in response to increasingly stringent fuel consumption standards, large automakers have equipped more advanced fuel-efficient transmissions in their products. With the increasing demand for high-efficiency and advanced transmissions, the establishment of a joint venture under the joint venture agreement will leverage the advantages, resources and expertise of both parties in the manufacture of automotive transmissions and related parts in China to ensure a stable supply of products to the Group in the future.