BERLIN -- German transmission supplier Getrag formed a joint venture with Dongfeng Motor Corp. to develop and produce dual clutch transmissions in China.
The two companies signed the agreement last week at a ceremony in Berlin attended by German Chancellor Angela Merkel and Chinese Premier Li Keqiang.
The joint venture, Dongfeng Getrag Transmissions, will start manufacturing dual clutch transmissions for compact cars in 2016 at a factory in Wuhan.
The new agreement supplements previous deals between the two companies.
In October 2013, Dongfeng and Getrag announced plans to produce as many as 250,000 six-speed dual clutch transmissions annually. At the time, the partners estimated the project's cost at 1 billion yuan (127 million euros).
Getrag, based in Untergruppenbach, Germany, has a plant in Nanchang in east China's Jiangxi province. The factory supplies gearboxes to Jiangling Motor Group Co., a state-owned producer of light commercial vehicles.
Dongfeng, a leading Chinese truckmaker, also has passenger vehicle joint ventures with Honda Motor Co., Nissan Motor Corp., Kia Motors Corp. and PSA/Peugeot-Citroen. It produces passenger vehicles under its own brand.