Shanghai (ZXZC)- Zhejiang Geely Luoyou Engine Co., Ltd. (Geely Luoyou), a 99%-owned indirect subsidiary of Geely Auto, will establish a joint venture (JV) with Aisin AW to manufacture and sell front-wheel drive 6-speed automatic transmission and relevant parts, according to Geely Auto’s announcement.

Besides, the JV, with a designed annual transmission capacity of 400 thousand units, will start mass production from 2020.

In accordance with the announcement, Geely Luoyou and Aisin AW will possess 40% and 60% equity interest respectively in the JV. In addition, the registered capital of the JV totals $117 million.

Aisin AW, a subsidiary of the Japanese auto part corporation Aisin Seiki, focuses on manufacturing and selling of auto transmissions, navigation systems and hybrid transmissions in Japan and other overseas markets, according to the announcement.

Geely Auto stated that the JV will take advantage of contractors' resources and technologies in auto transmission and relevant parts to ensure a stable supply for the company.