VW recalls nearly 400,000 cars in China

Volkwagen AG is recalling 384,000 cars in China because of problems with gearboxes, the German carmaker said.

The China-produced models Passat, Touran, New Bora, Sagitar, Magotan, Lavida, Skoda Octavia and Skoda Superb as well as imported Golf Variants, Sciroccos, Cross Golfs and Audi A3s are being recalled, China's General Administration of Quality Supervision, Inspection and Quarantine said.

The problems lie with Volkswagen's direct shift gearbox, which the quality regulator said might cause engine power failures.

The problems have been known since March 2012, and Volkswagen said a service alert led to new software being installed already in more than 90 per cent of the affected cars.

It and its joint venture partners in China, Volkwagen's largest market, also agreed in May to extend its warranty for the direct shift gearboxes to 10 years or 160,000 kilometres.

China Central Television aired a programme Friday in which Volkswagen owners complained of sudden losses or gains of power. The next day, China's quality regulator urged Volkswagen to initiate a recall.

Of the 9.1 million Volkwagen cars sold last year, 2.8 millon drove out of showrooms in China. This month, Volkswagen chief Martin Winterkorn said his company would build seven of the 10 new plants it was planning in China.

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