VW’s Effort to Hike Stake in China Venture Stalls

Volkswagen AG's hopes of gaining a 50% stake in its Chinese carmaking venture with FAW Group Corp. appear to be blocked for now, Reuters reports.

The news service cites unnamed sources at VW who say more than a year of talks have been fruitless. The company won a 25-year extension of FAW-Volkswagen Automobile Co. Ltd. last month.

But VW has gotten nowhere in an attempt to increase its 40% stake in the venture. One of Reuters' sources says the door to greater ownership seems to be closed at the moment.

Reuters notes that China is trying to help a handful of domestic carmakers prepare to compete in foreign markets. The central government also has been critical of what it describes as price gouging among foreign carmakers operating in the country.