A Volkswagen AG joint venture in China, FAW-Volkswagen Automobile, will recall 577,590 Golf and Sagitar cars in the country because of a headlight fuse defect that may lead to potential safety risks, the state's quality watchdog was cited as saying.
A Reuters report, citing the the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), said the recall covered Volkswagen's 416,364 Golf models produced between September 2009 and May 2014 and 161,226 Sagitar cars [Chinese variant of the Mk6 Jetta – ed] made between July 2010 and March 2012.
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AQSIQ said fuse defects could cause headlight failure, leading to possible security hazards.
just-auto research database PLDB snapshot: FAW and the Volkswagen Group revealed plans in May 2013 for a new manufacturing plant in the city of Changsha. The new facility will have an initial capacity of 300,000 vehicles.
Construction of a further FAW-VW facility was announced in February 2015 with news that the partners are to invest US$2.5bn in a Tianjin plant. The plant will begin operations in 2018 and have capacity for 600,000 vehicles.
The move followed FAW-VW's announcement in 2014 that it would set up a production base in Qingdao. The new plant in China's east is scheduled to begin production in 2017 or 2018 and produce vehicles based on VW's MQB platform. Capacity is estimated at 300,000 units per annum.
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By GlobalDataFAW-VW currently has four factories in three different locations, with its two plants in Changchun having combined capacity of 660,000 vehicles. The Chengdu factory has an annual production capacity of 450,000 cars and will increase to 600,000. A plant at Foshan has an annual production capacity of 300,000 vehicles and provision to expand to 720,000.
With the addition of the three new plants to its existing four, FAW-VW will have a combined capacity of 3.18 million once all the construction has been completed by 2018.
In June 2015, it was announced that VW had received government approval to increases its stake in the FAW joint venture. Currently, VW Group has a combined stake of 40% in the venture through VW AG, Audi AG and VW China.
