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VW to recall nearly 2,000 cars in China amid scandal
by Staff Writers
Shanghai (AFP) Oct 12, 2015


Ford to invest nearly $2 bn on China development
Shanghai (AFP) Oct 12, 2015 - US auto giant Ford will invest nearly $2.0 billion on research and development in China, it said Monday, despite falling sales in the world's biggest auto market.

The 11.4 billion yuan ($1.8 billion) investment, to be completed by 2020, will build up Ford's R&D capability in the country, especially at an existing engineering centre in the eastern city of Nanjing, the company said in a statement.

"With this investment in research and development, the next generation of Ford vehicles will be completely designed around our customers," said Mark Fields, Ford's president and chief executive officer.

Ford sold 700,196 vehicles in China during the first eight months of 2015, but that was down around one percent from the same period last year, amid an overall slowdown in the market due to weaker economic growth.

In August alone, the carmaker reported sales of 79,608 vehicles in China, a three percent decrease compared to the same month in 2014.

Still, Ford will expand its product line for the Chinese market by launching two electric vehicles next year, the statement said.

Beijing has made new-energy vehicles a priority but sales have disappointed despite the government push, industry officials say.

Ford also said it had partnered with Dida Pinche, operator of China's largest car-pooling app, to match Ford drivers with passengers in Beijing and Shanghai, cities which are plagued with traffic congestion.

Germany's Volkswagen on Monday announced a recall of nearly 2,000 vehicles in China -- the world's biggest auto market, where it is the top foreign brand -- in a global scandal over emissions cheating.

The auto giant is facing accusations that it installed software on millions of diesel cars worldwide to cheat emissions tests and evade limits on nitrogen oxide and other pollutants.

The Chinese government took aim at the firm, with the quality watchdog urging the company to address the problem as soon as possible.

The quality supervision agency said it was "highly concerned" about the matter and warned it could take further measures, according to a statement posted on its website on Monday, which gave no details.

China's environmental protection agency is also investigating whether VW's imported and locally produced vehicles violate emissions standards, Bloomberg News reported.

VW delivered 3.67 million vehicles in China last year but the recall affects only diesel vehicles imported into the country: 1,946 Tiguan compact SUVs and four Passat B6 cars, the company said in a statement.

It also repeated earlier statements by its two main joint ventures in China that none of the vehicles they manufacture are affected.

Foreign carmakers must enter into ventures with Chinese companies to sell domestically manufactured vehicles in the local market.

VW will first notify the affected owners of the need to fix the software and present detailed measures to deal with the issue to Chinese authorities, the statement said.

"Volkswagen would like to sincerely apologise for any inconvenience caused to our customers," it added.

VW must recall around 11 million diesel vehicles worldwide to remove a "defeat device" aimed at cheating emissions tests, and bring them into compliance with anti-pollution rules in affected countries.

bxs/slb/sm

Volkswagen


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