Volkswagen recalls 384,000 cars in China

Volkswagen has recalled more than 384,000 cars in China after consumer complaints about transmission failures. The recall is estimated by Chinese authorities to cost the company about $600 million. China is Volkswagen’s biggest market and the site for joint venture factories making models including the Golf and Audi A3.

The recall involves Volkswagen Group’s DSG (direct-shift gearbox) and alleged incidences of unintentional slowing or power loss. China has been vocal about the DSG transmission since 2009.  In that year, Volkswagen lifted the warranty on the gearboxes to 10 years or 160,000km. It is believed China is the only market with these problems with the automatic gearbox.

In Australia, Volkswagen spokesman Karl Gehling would only says that he is awaiting further details of the recall in China. Though Mr Gehling did not give further information, the affected DSG transmissions are believed to be assembled in China and are not similar to the units supplied for Volkswagen cars in Australia.

The Chinese recall comes less than a week after China’s state-run television station, CCTV, broadcast a story about unhappy Volkswagen owners. The Chinese ministry responsible for consumer affairs then took the matter direct to Volkswagen.

Volkswagen issued an email yesterday saying it is recalling DSG seven-speed gearboxes and will replace defective parts and upgrade software. China’s move immediately prompted global opinion on the DSG transmission. This includes the formation of a website and twitter site devoted to airing owners' problems. Annoyed Chinese Volkswagen owners with DSG-equipped cars also believe that the company is fitting sub-standard gearboxes to the China-market products while the rest of the world get higher-quality transmissions. 

Chines website gasgoo.com stated this week that respondents to a questionairre about the DSG problems “believe that the relatively poor protection rights afforded Chinese consumers give VW the power to act in this fashion, something it would not do in its home country of Germany.’’ 

The DSG transmission is sometimes known as a dual-clutch transmission and is fitted in different versions to most Volkswagen, Audi, Skoda and Porsche models.