ZF Opens Its First Car Transmission Plant in U.S.

ZF Friedrichshafen AG has begun producing 8- and 9-speed automatic transmissions at its new plant in Gray Court, S.C.

The $600 million facility ZF's largest single project anywhere will reach capacity by 2016 to build 400,000 8-speed and 800,000 9-speed automatics per year.

ZF has spent $385 million on the factory so far. It will begin a $215 million program later this summer to expand floorspace 50% to 1.4 million sq. ft. in about two years. At full production, the facility will employ nearly 1,700 workers.

The South Carolina plant will supplement ZF's production of 8-speed automatics in Saarbrucken, Germany. The company already supplies those gearboxes, which are intended for rear-drive powertrains, to Chrysler and Land Rover. Early next year Chrysler expects to begin making 9-speed automatics licensed from ZF at two plants in Indiana.

The new 9-speed is designed for passenger cars with transverse front engines. ZF says the system is as much as 16% more fuel efficient than a six-speed automatic.