FAW Board Chairman denies claims of intellectual property theft of VW technology

Gasgoo.com (Shanghai December 5) - FAW Group Board Chairman Xu Jianyi has denied claims that his company has infringed upon VW's intellectual technology property rights, the Beijing Youth Daily reported today. Mr. Xu made the statement at last week's FAW-VW dealership conference held in Foshan, Guangdong. He stated that FAW and VW's partnership relies on mutual respect and trust, and emphasized that there has been no intellectual property damage inflicted by either party.

Rumors of property right infringement first appeared in German business daily Handelsblatt. According to the original report, FAW was copying VW-patented technology, including the EA111 engine and MQ200 transmission, for its own brand vehicles, some of which are scheduled to be exported to foreign markets. One such vehicle is the Besturn B50, which will be exported to Russia and may compete with VW's Skoda products sold in the county.

When asked for comment on the issue, representatives from FAW have repeatedly said that the matter was awaiting official response from the manufacturer's leaders. Mr. Xu's (pictured) statement at the Foshan conference marks the first time FAW has officially responded to the issue.

The FAW-VW joint venture was established in Jilin's capital of Changchun in 1991, with its first product sold in the country being the VW Jetta. It is now one of China's largest and most successful Sino-foreign JVs, having sold over six million sedans since its founding.