JATCO Developing Low-Cost Automatic Transmission

TOKYO – JATCO, the world’s leading manufacturer of continuously variable transmissions, is going back to the future in emerging markets where CVTs remain too expensive.

The supplier, a Nissan subsidiary, is developing a standard automatic transmission to compete in lower-cost countries such as India.

JATCO President Takashi Hata, who will join Nissan’s executive ranks as senior vice president on Feb. 1, confirmed the plan in a recent interview with WardsAuto. 

Hata reports JATCO has an affordably priced automatic transmission under “serious development” and hopes to create a new market with the product.

The executive declined to comment on likely specifications, in particular whether the new transmission will have three or four forward speeds. “But clearly it should be cheaper than existing units in order to compete with manual transmissions,” he says. “Our main target market will be first-time car buyers.”

At the Tokyo auto show in November, JATCO unveiled what could be the base model for the new gearbox. Featured on the AvtoVAZ Lada Kalina and Lada Granta, both introduced last year, the 4-speed transmission is 11% shorter and 15% lighter while employing 16% fewer parts.

Built with nearly two-thirds slightly modified and common parts, the transmission also has been fitted in Nissan’s 1.5L Micra subcompact car, produced in China by Dongfeng.

Meanwhile, Hata says JATCO still is on track to achieve its fiscal 2018 sales target of ¥1 trillion ($9.6 billion). He declined to project sales out to fiscal 2020 but assured they would exceed ¥1 trillion. 

Contributing to growth is increased CVT and hybrid demand as well as future products such as 4-speed automatics for emerging markets.

In the current fiscal year ending March 31, the soon-departing executive is confident sales and earnings will grow 10% to upwards of ¥652 billion ($6.2 billion) and ¥37.4 billion ($359 million), respectively, both new highs.

Meanwhile, Hata is bullish on JATCO’s CVT8 series, introduced in summer 2012 for midsize to large cars with engines displacing from 2.0L to 3.5L. First to use the CVT were Nissan’s Altima and Serena sedans.

The automaker subsequently adopted the transmission for the Pathfinder SUV in the U.S. along with the NV200 taxi, currently on sale at select dealerships in metropolitan New York.

In October, Nissan launched the Pathfinder Hybrid, employing JATCO’s CVT8 Hybrid transmission, followed in December by the Infiniti QX60 Hybrid.

Acknowledging the work of his predecessor, Shigeo Ishida, for consolidating the supplier’s CVT lineup into two main series (CVT8 and CVT7), Hata declares consumers have begun to understand the fuel efficiency advantages of CVTs, particularly in North America and China.

In addition to Nissan, JATCO’s main customer, Toyota and Honda are expanding their respective CVT lineups. 

Although most Nissan cars now are fitted with CVTs, the automaker’s Infiniti portfolio of predominantly rear-wheel-drive vehicles employs JATCO 7-speed automatics.

Compared with fall 2012, when the dollar and euro emerged from the netherworld of sub-$1:¥80 and €1:¥100 levels, Hata is neutral about the current foreign-exchange environment, noting that many Japanese manufacturers including JATCO now are profitable.

“Over the past five years, we’ve restructured to be profitable at $1:¥80. Would a weaker yen be welcome? Of course,” he says. “But it won’t change our basic story of expanding overseas production. We want to be close to our customers.”

With capacity now in place in Mexico, China and Thailand and new capacity in China scheduled for March, JATCO will be able to produce nearly 3 million CVTs outside Japan.