Aiming to decrease the emissions of the locally built cars, Volkswagen is planning to spend about $508 million to initiate production of more fuel-efficient dual-clutch transmission for the Chinese market.
The head of operations of VW in China sees the move as a very important step to improve the position of Volkswagen Group China. He said the company may rely on the advanced propulsion system to get a bigger share of the local market while lowering fuel consumption and emission by 20% this year.
VW has plans to produce the 7-speed DSG or Direct Shift Gearbox in their powertrain site in Dalian. The initial volume of production will be 300,000 units before they double number later on.
Back in April, Volkswagen disclosed that they will be boosting their China joint ventures by as much as 6 billion Euros. These additional funds will come directly from the cash flow of their ventures in China.
