Geely Signs Production License with Antonov for Six-Speed Automatic Transmission

16 January 2007

Antonov plc has signed a Production License Agreement with Zhejiang Geely Automobile Gearbox Co, the transmission manufacturing subsidiary of Geely Automotive. This follows the announcement on 27 November 2006 that Geely and Antonov had signed Heads of Agreement for the license, which is for the production of the Company’s TX6 six-speed automatic transmission. (Earlier post.)

Under the license, Geely will have the non-exclusive worldwide rights to manufacture and sell transmissions covered by the Antonov 6 speed automatic patents and will also receive design support from Antonov. Geely has already taken two models of conventional automatic transmission to production and the Antonov TX6 will be an addition to this model line-up. The transmission will also be available to other vehicle makers worldwide.

Antonov will receive both License Fees totaling €900,000 (US$1.2 million) payable over the next nine months and then a production royalty on each transmission produced.

Antonov created this six-speed automatic in 2003. The transmission features a combination of planetary gears and parallel transfers of power—the engine’s output is transferred to two parallel three-speed modules. Each of these can independently accept power and transfer it to the differential. The transmission is very flexible, and can produce any overall ratio and any steps between any of the speeds.

Geely is one of China’s leading automotive companies and produces around 200,000 cars per year. Both companies will be working together to incorporate the TX6 into a number of models with production commencing in 2008.