Yeap, and it's quite true also.Saw it here first.

Volkswagen will spend 400 million euros (USD508 million) to start producing fuel-efficient DSG double clutch transmissions in China as part of a plan to reduce emissions of its locally manufactured fleet. This sum is part of the �6 billion investment package to expand production capacity and develop new vehicles in China for the period to 2012.

Volkswagen set a target three years ago to reduce fleet consumption and carbon dioxide emissions in China by 20% by 2010. In this context, Volkswagen Group China launched the efficient TSI engines in China in 2007, and gradually began domestic component production at its sites in the country.

The carmaker plans to build the seven-gear DSG transmission in its Dalian powertrain site, where initially some 300,000 units of the seven-speed DSG transmission will be produced before the capacity could be eventually doubled over time.

Next to Kassel in Germany, Dalian will be only the second Volkswagen plant that will assemble the DSG transmission, one of its best-known innovations of late.