Volkswagen probes claims that China FAW illegally copied transmission

Volkswagen probes claims that China FAW illegally copied transmission

2012 Vw Beetle

Volkswagen is seeking to uncover whether its Chinese partner, China FAW Group Corp., illegally copied a VW transmission unit, according to report from the Wall Street Journal. The accusation was first reported by German business newspaper Handelsblatt, which asserted that FAW might use VW's MQ200 gearbox in models to be sold in Russia. A spokesman for FAW, however, refused to comment on the allegations. A VW spokesman told the Journal that the carmaker "was examining the situation carefully before coming to any conclusions." If the claims are proven to be true, it could complicate Volkswagen's grand expansion plans in China. The automaker plans to invest around EUR14 billion (CNY109 billion) through 2016 to construct assembly plants and launch new models in China. VW is channeling that investment via its two joint ventures with FAW and SAIC Motor Corp. VW’s joint venture with FAW, FAW-Volkswagen Automobile Co., produced 37 percent more vehicles in the first half of 2012 to 620,600 units, according to LMC Automotive.






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