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MassimilianoTrantini:Be the bellweather of Transmission manufacturers in China by Year 2020

According to the statistics by China Association of Automobile Manufacturers, production and sales of automobile in China have exceeded 20 million cars in year 2013. Meanwhile, Chinese market remains the top large automobile market around the world for the 5th year. Experts of the industry expect sales of new cars of China shall stillfluctuate around 20 million cars, which means growth of Chinese market is still stable.

Therefore, automobile component suppliers will benefit from the growth of the industry, which includes Hangzhou IVECO Automobile Transmission Technology Co., Ltd. The company is a Joint Venture among by Hangzhou Advance Gearbox Group CO., LTD., Fiat Chrysler Automobiles and Guangzhou Automobile Group Component CO., LTD.MassimilianoTrantini, the general manager of Hangzhou IVECO Automobile Transmission Technology, takes interviews with reporter of, and shares the situation of the company now and its future plan.

Focus on Local Demand

MassimilianoTrantini says that the business of Hangzhou IVECO Automobile Transmission Technology is robustly growing following the increasing demand of Chinese automobile market. The company now owns customers such as IVECO, Fiat Chrysler Automobiles, GAC and Chery.

“At present our product portfolio includes S-series for export market, H-Series for local OEMs’ and C-Series for GAC-Fiat JV and GAC Group. The S-series is derived by IVECO technology and represents about 25% of our turn over. Another 25% is covered by H- Series that is developed internally by HAVECO Engineering. The remaining 50% is covered by C-series, which are the products licensed by Fiat Chrysler Automobiles and represent the leading edge of our technology. For example our 7 speeds Dual Drive Transmission leverages on Dry Dual Clutch Technology to provide our customers the best performance in terms of fuel consumption, environmental protection, drive-ability and fun-to-drive. Due to these features our transmission has been selected to equip Fiat Ottimo, the newly launched Fiat in the Chinese market”

The Volkswagen DSG issues in year 2013 raised concerns in public about DCT technology. MassimilianoTrantinididn’t comment on competitor. However he mentioned that theDCTtechnologyis a mature technology in Europe, which also has been equipped on Alfa Romeo vehicles and the DCT transmission has very good performances in the world.As far as HAVECO Dual Drive is concerned, more than 2 million kilometersof road test have been performed in China and Europein alldifferent road conditions for validation of the product in the Chinese market. Moreover the company has worked to design and customize Dual Drive to meet the specific Chinese customer requirements. At present for all Engineering activities HAVECO is fully supported by Fiat Chrysler AutomobilesResearch and development Center in Jiading District of Shanghai, which focuses on Powertrain application research and development in China.

Transmission Industry Tendency: Energy Saving & Multi-Gear

Will automatic transmission replace manual onesin the future in China?MassimilianoTrantini believes that manual transmission will always keep a space in Chinamarket will not be totally replaced by auto transmission. At present, manual transmission covers about 70% market share, and auto transmission covers others. In the future, manual ones might invert the market share until 30%.

Chinese automobile companies focus on technology is increasing, however cannot change reality by one shot as the gap on technology versus foreign companies is still wide. However MassimilianoTrantiniconfirms the progress madeby local companies, and believes they can reach European and American companies step by step with diligent and continuous investment and development. Based on market research, Chinese automobile companies are following the trend to produce multi-gear transmission such as 8- speed transmission and 9- speed transmission. HAVECO is having contacts with several Chinese OEMs’, which are keen to purchase the leading edge of current world-class transmission technology like Dual Drive Transmission

As emissions and Fuel Economy regulation in China are getting more stringent, transmissions play a very key role to help OEMs’ to comply with regulation. This is one the reason whyHAVECO has introduced into Chinese market the its own DDCT technology, that represents the most advanced system to enhance fleet compliance to new legislation.

According to introduction of MassimilianoTrantini, manual transmission production capacity of HAVECO is settled at 200 thousands units per year, and capacity of DDCT transmission willreach 300 thousands units per year. HAVECO plans to fulfill completely his capacity by 2018 and reach an annual output of 500 thousands units

To reach the current capacity installation HAVECO shareholders have invested ~¥2B

At last, MassimilianoTrantini says: “We believe that our products will be widely welcomed by more and more customers based on increased demand of Chinese market. Our vision is to become the leader of transmission manufacturersof Chinese market by year 2020.”