VW recalls 384,000 cars in China

China's quality watchdog the General Administration of Quality Supervision, Inspection and Quarantine of China has said in a statement on its website that carmaker Volkswagen AG will recall 384,181 vehicles in the country to fix a long-standing gearbox problem.

VW, which sells more cars in China than any other foreign firm, confirmed the recall, explaining, "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 most important vehicle systems, such as steering and braking, along with other relevant systems will not be affected," it said.

The recall, which will start on April 2, covers Passat, Sagitar, Golf, Touran and other models made at Volkswagen's China ventures as well as some imported models.

VW makes cars in China in partnership with SAIC Motor Corp Ltd and FAW Group. It sold 2.81 million cars in the country last year and has unveiled plans to almost double production capacity in the country in the next five years.

"In the coming years, we will build at least 10 new factories, seven of those in China alone," chief executive Martin Winterkorn told reporters as the European auto giant released its annual earnings statement.

From 2016, VW expects to churn out up to 300,000 vehicles per year in these Chinese factories, taking advantage of the world's fastest growing car market.

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