Automatic transmission fluid is a hydraulic and lubricating oil. This component of the automatic transmission provides lubrication, corrosion prevention, and a hydraulic medium to convey mechanical power. Primarily made from refined petroleum and processed to provide properties that promote smooth power automatic transmission and increase service life, the automatic transmission fluid is one of the few parts of the automatic transmission that needs routine service as the vehicle ages. Sergeant Clutch Discount Transmission Repair Shop recommends changing the automatic transmission fluid every 12,000 miles or ever 12 months.