Volkswagen recall 384,000 vehicles

German auto giant Volkswagen will recall 384,181 vehicles in China over gearbox defects after state television criticised it over the issue.

In a company statement, Volkswagen said an electronic malfunction could cause cars to lose power while being driven.

'In isolated cases, an electronic malfunction in the control unit or a lack of oil pressure inside the gearbox mechatronics may result in a power interruption,' the statement said.

Steering and braking would not be impacted, it added.

The vehicles affected include both imported models such as the Audi A3 and domestically-made ones, among them the Magotan and Passat, said the Chinese government's quality watchdog, which on Saturday had ordered the recall.

The move followed a year-long investigation, it added, and the cars involved came off the assembly line between December 2008 and early this month.

Volkswagen said it would replace components in the gearbox of affected vehicles for free.

The recall came after China Central Television alleged in an annual corporate malpractice programme that Volkswagen had used substandard gearboxes in some models, causing acceleration problems and accidents.

Volkswagen, which is Europe's biggest carmaker, said last week it planned to open seven more factories in China, the world's largest car market.

It currently has two passenger vehicle production joint ventures with China's SAIC Motor and FAW Group.

source: bigpondmoney.com.au

BMW sees room for more growth in China’s luxury car market

BEIJING — German carmaker BMW sees continued double-digit sales gains in China next year as the luxury car market there, at 9-10 percent of overall sales, still lags the developed world, where the luxury segment accounts for 15 percent of the total.

The German firm, which is building a second plant in northeast China to initially double its capacity to 200,000 vehicles, later rising to 300,000, expects to sell 1 million cars in China over the next three years, Duan Jianjun, deputy sales chief at BMW’s venture with the state-owned parent of Hong Kong-listed Brilliance China Automotive Holdings, told Internet portal Sohu.com at the Guangzhou auto show.

China’s luxury car market has lost some of its steam after years of break-neck growth, though demand for high-end cars remains robust as personal wealth grows.

“We have sold 1 million cars in China so far. We will strive to sell another million in the next three years,” Duan said.

BMW’s China car sales grew 35 percent in January-October from a year earlier, five times the growth rate of the overall market, and topping Audi’s 31.2 percent and Mercedes-Benz’s 8 percent growth.

Daniel Kirchert, senior vice president at BMW’s China venture, told Sohu.com separately that the venture was preparing to launch a China-only car. He did not elaborate. BMW and Brilliance plan to produce 200,000 4-cylinder, 2-litre petrol engines a year at an engine plant in Shenyang.

source: interaksyon.com