There are two different types of automatic transmission; the front wheel drive version called a Transaxle which incorporates a differential and secondly a rear wheel drive version called a Transmission that does not.
Most people refer to the transaxle as a transmission. We just need to understand the major difference between the two.
Just like that of a manual transmission, the automatic transmission's primary job is to allow the engine to operate in its narrow range of speeds while providing a wide range of output speeds. An automatic transmission locks and unlocks different sets of gears to the output shaft to achieve the various gear ratios. In an automatic transmission; the same set of gears produces all of the different gear ratios. The planetary gearset is the device that makes this possible in an automatic transmission.
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