The primary reason transmission fluid is red is to distinguish it from other fluids and prevent confusion for the user. The red color helps mechanics and vehicle owners easily identify transmission fluid on the ground or within the vehicle, distinguishing it from other fluids like engine oil (which is usually brown or yellow) or coolant (which can be green or orange). While additives in the fluid can contribute to its color, the main purpose of the red dye is safety and ease of identification.
Why is transmission fluid red?
Viscosity modifiers turn the fluid red.
Oxidation preventers turn the fluid red.
To distinguish it from other fluids and prevent confusion for the user.
Red fluids are more slippery.
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