Magneti Marelli and Chery to Form JV for Automated Manual Transmissions

7 September 2007

Magneti Marelli, part of the Fiat Group, and Chery Automobile Co. Ltd have signed a Memorandum of Understanding for the creation of a joint venture in China aimed at the production of hydraulic components for Magneti Marelli’s AMT (Automated Manual Transmission), also known as Selespeed.

According to expectations, the joint venture will be operative by the spring of 2008. Based on the Memorandum of Understanding, Magneti Marelli will hold the majority of the future company’s capital. The components manufactured by the new company will be used by Chery for its automobiles equipped with automated transmission, and they will be made available to other car makers as well.

Chery was the first Chinese car maker to adopt Magneti Marelli’s Selespeed system (since 2004).

The AMT is based on an electronic control unit and a hydraulic actuation system that supervise the use of the clutch and the shifting of gears, allowing the driver to shift gears without using the clutch, in sequential mode or completely in automatic. The electronic optimization of the shifting can deliver lower fuel consumption compared to an automobile with manual transmission.