VW Extends Partnership with China’s FAW

Volkswagen AG has extended its joint venture with Chinese carmaker FAW Group Corp., which was due to expire in 2016, by another 25 years.

The partners also agreed to expand their product lineup and co-develop unspecified new business activities. They began producing cars together in 1991.

The German automaker said in July it was investigating whether FAW had illegally used some VW technology. News media had reported that FAW had copied a transmission for use in a China-made vehicle it sells in Russia. VW now says no rights had been infringed.

VW said last week its Chinese joint ventures would invest €9.8 billion on new products and facilities there from 2013 to 2015.