Jatco to boost CVT production

Jatco Ltd., part of Japans Nissan Motor Co. group, will boost annual production of continuously variable transmissions (CVT) by 25% from the current 1.6 million units to slightly more than two million by fiscal 2010. A new plant will open in China while the efficiency of assembly lines at three local factories will be improved. The move came in response to plans of expanding sales of CVT-equipped vehicles by Nissan, for which Jatco is the exclusive supplier of this type of transmission. Suzuki Motor Corp., which acquired a stake in Jatco in 2007, is also looking to increase sales of CVT vehicles. In China, the factory now under construction in Guangzhou will be onstream in 2009 and is expected to manufacture 140,000 units per year. In Japan, output will be increased at three plants in Shizuoka and Kyoto prefectures to bring the combined figure to 2 million units. CVTs offer about 10% higher fuel economy than conventional automatic transmissions. Amid high gasoline prices, Nissan and others intend to lift sales of CVT vehicles. Jatco will also increase supply to other customers such as Mitsubishi Motors Corp. and Chrysler LLC. (September 13, 2008)