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Good shift quality in automatic transmissions is important for fuel efficiency, driver comfort, and performance. Maintaining this performance over the life of the vehicle is also important. Typically lubricant development focuses on reducing viscosity and friction in order to reduce parasitic losses. In an automatic transmission other factors are also important for good performance, primarily due to the shifting clutches and the torque converter clutch. A high level of friction is desirable for torque capacity and a steady decrease in friction as sliding speed (rpm) decreases is necessary for both good shift feel and good friction system durability over the lifetime of the vehicle. Changes in the friction system over time that result in a lowering of the friction level, particularly at higher sliding speeds, compromise the performance of both types of clutches.

Improving vehicle fuel efficiency is a key market driver in the automotive industry. Typically lubricant chemists focus on reducing viscosity and friction to reduce parasitic energy losses in order to improve automotive fuel efficiency. However, in a transmission other factors may be more important. If an engine can operate at high torque levels the conversion of chemical energy in the fuel to mechanical energy is dramatically increased. However high torque levels in transmissions may cause NVH to occur. The proper combination of friction material and fluid can be used to address this issue. Friction in clutches is controlled by asperity friction and hydrodynamic friction. Asperity friction can be controlled with friction modifiers in the ATF. Hydrodynamic friction control is more complex because it involves the flow characteristics of friction materials and complex viscosity properties of the fluid.