Automatic transmissions are becoming more popular on vehicles today. Eighty-eight percent of light vehicles manufactured in 1999 were equipped with an automatic transmission. Although, this number is only a few percentage points higher than a few years ago, this slightly higher percentage is applied to higher new light vehicle sales. In 1999, 18.49 million new vehicles were sold in Canada and the United States. When a higher factory installation rate of automatic transmissions is applied to 1999 new vehicle sales, it represents 16.27 million vehicles equipped with automatic transmission.

There are several reasons for automatic transmissions becoming more popular. The main reason is that automatic transmissions today perform better than they did in the past. There have been many technological breakthroughs that make automatic transmissions perform as well as a manual transmissions. For this reason, customers now prefer to have automatic transmissions.

Automatic transmissions today are very complex, as they are controlled by advanced electronics. These advanced electronics prevent the transmission from hunting between gears. They also make the transmission shift smoother. With the use of electronics there are less mechanical parts, so automatic transmissions now weigh less. Also contributing to the weight loss is improved castings and lighter metal such as aluminum being used. Improved fuel economy is another benefit of the advanced electronics and weight loss.

Ten years ago there were only three- and four-speed automatic transmissions, today there are four- and five- speed automatic transmissions. There is even the possibility of a six-speed automatic transmission becoming available in the North American market by 2003. Five-speed automatic transmissions are becoming more popular on vehicles today and will likely become more popular in the future. DaimlerChrysler will build Mercedes-Benz designed five-speed automatics at one of its North American transmission plants for its Chrysler division's cars, trucks, and SUVs. General Motors already has a five-speed automatic transmission that it sells to other vehicle manufacturers including BMW. General Motors is expected to start using this transmission on its own vehicles in the next two years. Acura, Audi, BMW, Ford, Hyundai, Jaguar, Lexus, Lincoln, Mercedes-Benz, Porsche, Volkswagen, and Volvo all offer a five-speed automatic transmission on all or some of their vehicles. The reason vehicle manufacturers are offering more speeds in their automatic transmission is to improve fuel economy.

Volvo's S60 Geartronic
Automatic Transmission

Many new vehicles have a driver-selectable manual shift mode for the automatic transmission. The vehicle driver simply pushes a button or slides the gear selector into a slot to activate the manual mode. The gear selection is controlled by pushing buttons on the steering wheel or by moving up or down on the floor mounted gear selector of the vehicle. Audi, BMW, DaimlerChrysler, Hyundai, Honda, Mitsubishi, Toyota, Porsche, Volkswagen, and Volvo all offer the manual shifting automatic transmissions on their vehicles. Each manufacturer calls it a different name, ranging from Tiptronic to E-Shift to Autostick.

In order to save development and production tooling costs, vehicle manufacturers are making automatic transmissions standard on their vehicles. When vehicle manufacturers develop a new engine or a new vehicle, they need to have a compatible transmission for it. In some cases the manufacturer simply dips into the corporate parts bin and modifies an existing transmission for it. In other cases, the manufacturer needs to develop a new transmission for it and in most cases cannot justify developing a manual transmission that will only make up ten to twenty percent of total sales, thus making the automatic transmission standard equipment on the vehicle.

Customers now prefer automatic transmissions to manual transmissions. They are aware of the advancements such as advanced electronics and manual shifting automatic transmissions. Drivers can see that the automatic transmission can offer the fuel economy of a manual transmission and that they can control which gear the vehicle is in. There are also a lot more vehicles on the road today, which has created increased traffic. Consumers do not want to drive a manual transmission in rush hour traffic.

Vehicle manufacturers are listening to its customers and dealers by providing more availability of automatic transmissions. For the first time ever, sports car maker Porsche offers the option of an automatic transmission to its buyers of its famed 2000 911 Turbo. Volkswagen dealers are asking for more automatic transmission equipped cars at the NADA conference and are being told that they will receive them. Those two manufacturers are known for their performance-oriented drivers, who are expected to be driving manual transmissioned vehicles. This is a sign that times are changing and automatic transmissions are becoming more popular.

To prolong their life expectancy, automatic transmissions need to be serviced routinely. The routine service includes replacing the transmission fluid and transmission filter. In the past, automatic transmissions needed to be serviced every 30,000 miles, but today it is between 60,000 and 100,000 miles, depending on the vehicle and driving conditions. This is because of improved transmission design and long- life transmission fluid. Although there are more vehicles equipped with an automatic transmission, it is not expected to dramatically increase the number of automatic transmission services performed each year. This is because of the increased service intervals and unawareness of the importance of changing the transmission fluid and filter. The replacement of transmission fluid and filters will see a long term, slow growth.

Frost & Sullivan is currently working on a study of the North American Automotive Filter Aftermarket. The study is expected to be published in April 2001.