PSA to Produce Aisin Transmissions in France

PSA Group is pushing ahead with plans to assemble automatic transmissions designed by Aisin Seiki Co. after the Japanese company opted not to form a joint venture production company in France, sources tell Reuters.

The news service says PSA will build the gearboxes through a licensing deal likely to be announced later this month. The French carmaker currently buys 6- and 8-speed transmissions from Aisin plants in China and Japan.

It isn’t clear how many transmissions PSA plans to build locally. But Reuters notes that moving production to Europe would reduce costs and streamline the supply chain.

Aisin, which is controlled by Toyota Motor Corp.,  was unwilling to share production with PSA because it wants to maintain absolute control over the quality of the transmissions, according to Reuters’ sources. They say the gearboxes PSA builds under license won’t carry the Aisin brand.