In Power Transmissions we explore trends affecting transmission hardware and

fluids.

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 POWER TRANSMISSIONS

Global Trends

Automatic installation growth continues

Rise of hybrids will impact hardware and fluids

>60% ~4%
Automatic Hybrid Hybrid Growing
share of applications drivetrain use of CVT
installations growing energy losses DCT & EVT

As automatic transmissions have now become more fuel efficient than manuals, their
global installation rate has grown from <50% in 2012, to >60% this year. Their increasing
use in hybrid vehicles is impacting automatic hardware designs and fluid requirements.
Despite all the improvements made in transmission efficiency, the drivetrain still
consumes 3 to 5% of the hybrid vehicle’s energy. We expect the installation of
alternative automatic designs to surpass conventional stepped gear automatics.

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 POWER TRANSMISSIONS

Transmission Installations – Growth of Automatics

2024 Full
HEV
Installed Transmission
2017 actual vs. 2024 forecast

Automatic +20%
Mild
HEV
Installations vs. 2017 Stop
Start
Stop

Manual -5%
Start
Stop Stop
Installations vs. 2017
Start Start

ICE ICE
Reduction <5% ICE
ICE
BEV
Installations total
2017 2024 2017 2024 2017 2024
Automatic Manual / Reduction
Auto Man Gears

Data Source: IHS Automotive

Through 2024, automatic installations will continue their momentum, largely due to
their use hybrid applications, where they may be used to select the optimum power
source in addition to optimum gear ratio. Manuals will continue to lose ground, due to
the focus on fuel economy and electrification. With battery electric vehicles, reduction
gear box installations will increase, but still represent <5% of the total. More complex
multi-gear designs are planned, to optimize motor size and performance, which will also
bring unique lubrication challenges.

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 POWER TRANSMISSIONS

Regional Transmission Installations

China
Asia
North
South
Pacific
EMEA
America
(ex China)
REDUCTION
REDUCTION
EVT
EVT
CVT
CVT
DCT
DCT
AT
AT
MT/AMT
MT/AMT

2017 2024
0%
2%
1%
9% 20%
22%
28%
23%
2% Hybrid Automatics

Trend for regional diversification set to continue

Data Source: IHS Automotive

However, regionally the picture is becoming increasingly fragmented. Production in

North America is relatively flat and looks set to remain a predominantly conventional
automatic market, with increasing hybridization. In South America, the use of manual
transmissions will slow as stepped gear and continuously variable installations grow.
However, hybrid installations will lag with imports coming from other regions. Europe is
another relatively flat market and manuals will lose out to hybrid DCTs as vehicles are
hybridized. In China, where production is expected to increase by more than 20% over
this period, manuals are in decline with DCTs showing the strongest growth as they are
automated, and there will be a relatively large push to hybridization with Electrically
Variable Transmissions (or EVTs) and the REDuction gearboxes used in BEVs. In the rest
of Asia Pacific, manual transmission installations increase with the growing market,
while conventional automatics lose ground to all other segments, with most growth in
CVTs and EVTs. In our view, this trend for regional transmissions hardware diversification,
looks likely to continue.

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 POWER TRANSMISSIONS

Hybrid Transmissions – Diverse Designs

Relative Number of Hybrid Installations by Type:

2024
2024 MY
MY AT
AT DCT
DCT EVT
EVT CVT
CVT
Toyota
ZF Group
Volkswagen
Aisin
Daimler
Honda
Hyundai
Getrag
Geely
Mazda
GM
Ford
Data Source: IHS Automotive

Growth in vehicle hybridization means OEMs are selecting the optimal transmission
designs. Automatics are becoming the top choice for mild hybrids from current
automatic transmission leaders including ZF, Aisin, and Daimler, who are all modularizing
their designs. DCTs are next in line, with VW, Hyundai, Getrag and Geely all hybridizing
their designs. EVTs are in the top spot for full hybrids, and are mainly used by Toyota and
Honda, but with different power split designs. CVTs are currently being used as a
secondary design by some OEMs.

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Hybrid Transmissions – Fluid Requirements

AT

ENGINE

ATF
PLANETARY GEARSETS
TORQUE
CONVERTER

To illustrate the hybridization of transmissions, let’s start with a schematic of a

conventional AT, the torque converter to the left and the planetary gear sets to the right.

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 POWER TRANSMISSIONS

Hybrid Transmissions – Fluid Requirements

BATTERY AT

ENGINE

ATF
+ electrical properties
+ corrosion protection

In most current hybrid configuration the electric motor is integrated into the
transmission, in direct contact with the transmission fluid.

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 POWER TRANSMISSIONS

Hybrid Transmissions – Fluid Requirements

Motors are typically integrated within transmissions

BATTERY Hybrid AT

ENGINE

ATF
+ electrical properties
+ corrosion protection

So, in addition to the normal ATF properties, the fluid needs to have the proper electrical
properties and protect the motor windings from corrosion.

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 POWER TRANSMISSIONS

Hybrid Transmissions – Fluid Requirements

Motors are typically integrated within transmissions

BATTERY Hybrid CVT

ENGINE

CVTF
+ electrical properties
+ corrosion protection VARIATORS

So, in addition to the normal ATF properties, the fluid needs to have the proper electrical
properties and protect the motor windings from corrosion. The same holds true for
hybrid CVT fluids…

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 POWER TRANSMISSIONS

Hybrid Transmissions – Fluid Requirements

Motors are typically integrated within transmissions

BATTERY Hybrid DCT

ENGINE

DCTF GEARSETS
+ electrical properties
+ Cu corrosion

as well as Hybrid DCT fluids.

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 POWER TRANSMISSIONS

Hybrid Transmissions – Fluid Requirements

Motors are typically integrated within transmissions

BATTERY Hybrid
EVT
ENGINE

Gear Protection
+ electrical properties
+ corrosion protection REDUCTION
GEARS

In electronically variable hybrids, where there are no clutches, such as the Toyota power
split, an ATF is still used instead of a gear oil, to protect both the gears and the motor.

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 POWER TRANSMISSIONS

Hybrid Transmissions – Fluid Requirements

Motors are typically integrated within transmissions

BATTERY EREV

ENGINE

Electrical Properties
+ gear protection
+ corrosion protection
+ oxidation resistance

And, in the extended range BEV, the fluid is in contact with an even larger E-motor, so
there is a need for added thermal conductivity and oxidation resistance; and, if clutches
are used, friction modifiers.

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 POWER TRANSMISSIONS

GM Propulsion

Nathan Siebert | Engineering Manager for Fluids and Lubricants, General Motors

While, most hybrid transmissions currently use the same fluid technology as their non-
hybrid counterparts, we asked Nathan Siebert from GM if we can expect any
specification changes as a result of electrification.

Nathan Siebert: “GM feels there will be a new specification for the EV gearbox just to
handle some of the specific requirements for the fluids that will be used in those
applications. We also feel that there will be a modification in transmission fluid
specifications to accommodate hybrids.”

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 POWER TRANSMISSIONS

Dedicated Hybrid Transmission Fluids

Transmission
Durability
Friction Gear, bearing, Electrical
Properties pump Properties
in presence Electrical,
of clutches Insulator

Aeration & Thermal

Oxidation Capacity
Smaller sump, Cool the
fill for life windings

NON-
DEDICATED
Viscometrics HYBRID Materials
Pump efficiency, FLUID Compatibility
drag and churning Copper, resin,
losses. Gear and
bearing efficiency plastic

Balance of electrical properties with gear

protection and material compatibility

These are the properties of a typical transmission fluid. But, OEMs are now looking for
hybrid transmission fluids with unique performance attributes including...
High volume resistivity to act as an insulator and thermal capacity, to effectively cool the
windings while controlling fluid oxidation. It is critical to carefully balance electrical
properties with gear protection and materials compatibility.

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 POWER TRANSMISSIONS

North American Light-Duty Service Fill Fluid Demand

Conventional fluids MERCON® LV Installations

4
continue their role in
Millions
reducing fuel consumption
service fill 2
• Latest generation of low @ 150,000
viscosity ATFs now reaching miles 0
their service interval Model Year > 09 10 11 12 13 14 15 16

US Service Fill Market

CAGR growth 2016 to 2021
(Cars and Light Trucks)
• DEXRON® III/MERCON® -13%
• High viscosity ATF -6% DCTF

• Low viscosity ATF growth 8% CVTF

• CVT fluid growth 28% LOW VIS ATF

• DCT fluid growth 47%

HIGH VIS ATF
D/M ATF

2016 2021

Meanwhile in North America, service fill demand continues to evolve as the

latest generation of low viscosity transmission fluids reach their first drain.
Looking out several years, we expect a steady decline of DEXRON® III, MERCON®
and high viscosity fluids. CVT fluids, although experiencing a large percentage
growth, will still account for less than 10% of the market, with most still being
under warranty. A similar picture is emerging for DCT fluids which are unlikely to
account for more than 1-2% of the North American market by 2021.

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 POWER TRANSMISSIONS

Clearer Labels for ATFs

NCWM adopted API proposed amendments to Handbook

130 regulations to allow suitable for use claims
• Based on appropriate field, bench and/or transmission rig testing

Supported by ILMA
• The amendments help bring some clarity to labeling

Considered to be a “win-win” by AOCA

• ATF consumers, automotive service providers, aftermarket
manufacturers, weights & measures regulators

January 1 2018: labeling & documentation

mandates in effect in 19 states
• Other states may follow suit

To clarify ATF wording, the National Conference on Weights and Measures has adopted
amendments to Handbook 130 that specify labeling and documentation requirements.
The revisions provide clearer guidance for proper labeling to substantiate performance
claims and are supported by ILMA. The Automotive Oil Change Association described
the amendments as a win-win situation for all stakeholders, with the conference’s
official recognition of the performance-based standard commonly referred to as
“suitable for use.” The updated mandates went into effect automatically in 19 states at
the start of this year and other states may follow suit.

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 POWER TRANSMISSIONS

Heavy-Duty Transmissions Reduce Energy Loss

Increasing use of ATs for urban applications

Transmission efficiency – increasing gear ratios, torque
converter damper modifications & start/stop capability
Powertrain Integration
Hybridization
• Mandates and incentives encourage sales

Electrification
• MAN Volkswagen and EMOSS pilot

Image Source: EMOSS

e-trucks with Allison transmission

Multi-speed gearing multiplies motor torque, allowing

for less-expensive and lighter electric motors

There is an increasing use of automatics for short haul energy savings in the North
American commercial vehicle fleet, using electronics to optimize the combined
performance of the engine and transmission. Hybridization is also gaining ground, with
Allison hybrid transmissions offering fuel savings up to 25% depending on the vocation
and duty cycle. However, to date, the added vehicle purchase price in a low fuel price
environment is a sales deterrent, although with mandates and incentives, this situation
could change in the future. For full Electrification, we have seen Allison stock
transmissions being used in e-trucks, where the multi-speed gearing effectively
multiplies motor torque and reduces energy consumption, which extends the vehicle’s
range and allows the use of less-expensive, lighter and smaller motors.

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 POWER TRANSMISSIONS

Heavy-Duty Automatic Transmission Fluids

VOITH DRAIN INTERVAL

SPECIFICATION km
H55.6355.XX 60,000
Even longer drain H55.6356.XX 120,000
150.014524.XX 180,000

TES TES
Mainstream hybrid fluids
468™ 295™

Lower viscosity?

We see three key trends drive change in commercial vehicle transmissions. First,
extending oil drain intervals to reduce maintenance costs and cut downtime. Voith has
introduced a new “maximum drain” specification increasing their previous long drain
interval by 50%, to over 110K miles. Second, is hybridization and the move to lower
viscosity fluids. We’ve seen Allison rolling their TES-468 hybrid specification
requirements into their mainline extended drain specification, paving the way for
increased hybrid use. Third, is the reduction in viscous drag delivered by lower viscosity
fluid. Maintaining the required level of anti-wear and hydraulic performance is a
challenge.

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