October 17, 2014 / 9:05 AM / in 3 years

Volkswagen to recall over 580,000 cars in China: government

SHANGHAI (Reuters) - Volkswagen AG told China’s quality watchdog that it planned to recall more than 580,000 cars in the country, after the agency launched an investigation in August.

The VolksWagen logo is seen on their XL 1 car during the media day at the Paris Mondial de l'Automobile, October 3, 2014. REUTERS/Jacky Naegelen

Volkswagen AG’s joint venture in China, FAW-Volkswagen Automobile Co Ltd, will recall 563,605 New Sagitar models produced between May 2011 and May 2014 due to a problem with the rear axle arm of the cars, the General Administration of Quality Supervision, Inspection and Quarantine said in a statement on its website.

Volkswagen is also recalling 17,485 imported Beetles due to the same axle problem.

FAW-Volkswagen, majority owned by state-owned China FAW Group Corp [SASACJ.UL], declined to comment. Officials at Volkswagen China could not be immediately reached for comment.

Last year, Volkswagen recalled 384,181 vehicles in China to fix a gearbox problem after the German carmaker was named in an annual investigative special on corporate malpractice produced by state-run China Central Television.

The German carmaker delivered over 2.7 million vehicles to Chinese customers during the first nine months of this year, up 15.2 percent from a year earlier and outpacing industry growth of 7 percent.

Reporting by Samuel Shen and Kazunori Takada; Editing by Ryan Woo

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