February 18, 2008 – Chinese automaker Huatai will use German technology to build 4-speed automatic transmission gears for its new SUV and sedan cars, Chinese language newspaper Beijing News reported today.

Under a technology transfer agreement recently reached between the Huatai Auto and ZF Friedrichshafen AG, the German power train and chassis maker will supply automatic transmission technology to China’s Huatai Auto Group as part of the cooperation deal.

A Huatai Auto official said the automatic transmission gears will be produced in Huatai’s production base in Erdos, Inner Mongolia Autonomous Region. By 2014, the base will be able to produce 150,000 units of auto transmission gears. In addition to 4-speed auto transmissions, Huatai is also planning to build 6-speed auto transmissions using German technology.

Separately, the Huatai Auto is also planning to produce 300,000 clean diesel engines (with displacement between 1.5 liter and 2.8 liters) designed by Italian engine maker VM in 2009. The Chinese automaker plans to increase the output of these diesel engines to one million units annually by 2012.

Huatai plans to launch two self-developed SUV models by the end of 2009 and three self-designed diesel sedans by 2010.

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