2008 Antonov to Build 6-Speed Automatic Transmission in China Review

[Spiral]

Antonov and Loncin could be the first to build a 6-speed automatic transmission in China – further details revealed at Beijing Auto Show Antonov chief executive John Moore will present a full technical update of its 6-speed automatic transmission - likely to be the first 6-speed automatic to be built in China - at a technical forum being held on 22 April 2008 at the Beijing Auto Show. The title of Moore’s presentation is ‘a new approach to automatic transmission design for the Chinese market’.

“The Beijing Auto Show will be a busy round of meetings with customers interested in our six-speed automatic transmission,” said Moore. “We’re making considerable progress in China and our plan with Loncin to establish a high quality and highly competitive manufacturing capability is evidence of our growing presence and commitment to China. The various conferences surrounding the show provide an excellent opportunity to catch up with industry contacts from around the world.”

To fully prepare for its joint venture with Loncin, Antonov is establishing a wholly owned foreign enterprise at Chong Qing, where the two companies plan to set up their automatic transmission manufacturing plant. Initial sales will be targeted at Chinese domestic car makers, but the intention in the longer term is to export. The initial production capacity is planned at 200,000 units per annum.

Antonov signed an agreement with Loncin in September 2007 to work together to set up their manufacturing joint venture. The joint venture will be formed once Antonov has completed the installation of its transmission system in 1.6-litre mule vehicles and when Loncin has completed detailed production planning and costing. Development vehicles with prototype transmissions have just started running in the UK and the production planning is due to be completed in May 2008.

Antonov and Loncin expect to run customer vehicles from September 2008 onwards with a planned start of production for vehicle programmes commencing mid-2010.

Antonov’s transmission system for the Chinese automotive market offers much quicker and easier integration and calibration than traditional transmissions. It also introduces Chinese carmakers to a home-grown six-speed gearbox offering high mechanical efficiency and world-class shift quality.

Antonov’s six-speed design offers a low entry cost to the application of a full electronically-controlled six-speed gearbox. Six-speed automatic transmissions are much desired by Chinese consumers, but currently have to be imported by carmakers.

The joint venture with Loncin is a key element in Antonov's commercial strategy to maintain direct involvement in the application of its technology. It enables Antonov to have closer control over its intellectual property rights in order to reduce risk and generate better returns compared with a pure licensing business model.

The wholly owned foreign enterprise at Chong Qing provides a stronger organisational basis for Antonov’s Chinese activities, supported by a restructured European operation concentrated in a new technical centre at Warwick in the UK.

The Chong Qing enterprise and Warwick technical centre are both helping with the continued commercialisation of Antonov’s patents and intellectual property, which is currently focused on a number of technologies including a low cost four-speed automatic transmission targeted at emerging markets.

Other technologies include a two-speed automatic mechanical module. Initial production is for a dual-speed supercharger with additional applications to engine front-end accessory drives under development. The module is aimed at both aftermarket and high volume original equipment market.

The two-speed self-controlling drive unit is also ideally suited for electric vehicles, which can benefit from a lower start ratio for better acceleration and higher cruise ratio to reduce driveline noise and improve energy efficiency.

“Antonov is a business focussed on automotive innovation and the Chinese market is rapidly becoming the premium market for automotive innovation,” said Moore. “Antonov has a substantial intellectual property portfolio and is actively expanding this wherever commercial opportunities are identified. The technologies we’re commercialising are at different stages of development, but all have high volume potential in the Chinese market.”