Analysis: Mixed opinions regarding VW's DSG technology in China

Gasgoo.com (Shanghai) - Volkswagen's recent decision to recall vehicles equipped with its DSG gearboxes in Taiwan has stirred a great deal of controversy in mainland China. Several media figures have accused VW of abiding to a double standard, something which the manufacturer denies. Still others have gone as far as stating that the technology is defective and should be pulled from its vehicle lineup. VW, for its part, has still not been able to provide an airtight solution to the problem.

In order to better understand the issue, Gasgoo.com (Chinese) held a week-long survey collecting opinions from 2,013 industry experts and insiders.

In the survey's first question, participants were asked if they believed that the complaints were unwarranted and whether or not the DSG gearbox technology was sound. A resounding 76 percent disagreed, believing that the technology does indeed have problems. Only ten percent agreed, while 14 percent said they did not understand the technology well enough to render a verdict. According to the majority of respondents, the publicly available materials make it evident that the gearboxes have problems. Furthermore, owners have been voicing complaints of difficulty and sometimes inability in shifting gears as early as two years ago. These same owners have also been unhappy of these problems persisting after supposed dealer repairs. At the moment, most of Shanghai VW and FAW-VW's models are equipped with DSG gearboxes. Without any relevant legal case, the scope of the issue is limited to the manufacturer, dealerships, consumers and the media.

If there is in fact a problem with the DSG gearboxes, why does VW China insist on sticking to its guns on the issue? When asked what they thought about the manufacturer's attitude on the issue, 37 percent of respondents said that they believed that VW was not being straightforward with its consumers in order to protect its own interests, while 39 percent answered that manufacturer simply did not respect the rights of consumers in China. These respondents believe that the relatively poor protection rights afforded Chinese consumers give VW the power to act in this fashion, something it would not do in its home country of Germany.

There are numerous cases of manufacturers ignoring the rights of Chinese buyers in order to cut production costs or for other similar reasons. According to a consulting firm analyst, who wishes to remain anonymous, upon first entering China, several multinational manufacturers chose to exclusively purchase high quality materials. However, after becoming accustomed to the intricacies of the Chinese market, these manufacturers began to realize that they could use inferior parts without much repercussion. Due to the lack of clear standards, substandard steel, slightly radioactive parts and impure rubber could be used without consequence. Without a strong independent third party to protect their rights, consumers could not exert much pressure on manufacturers. "Some multinational enterprises have gone far beyond domestic manufacturers in ignoring consumer rights," said analyst stated.

Meanwhile, 19 percent of respondents answered that VW's public relations department received insufficient support from both the media and the government, making it hard for them to gain the trust of ordinary consumers. Only five percent of respondents believed that the scope of the DSG problem has been unreasonably blown out of proportion.

When asked how VW should best handle the DSG question, a resounding 83 percent supported a full vehicle recall. 11 percent supported replacement of the affected auto parts, while only two percent maintained that VW should carry with its current policy of resolving the problem as quietly as possible.

Some have gone as far as claiming that the DSG technology is fundamentally unstable, so VW is avoiding a recall for fear that it may still not be able to resolve the problem. Although dual clutch technology has been around for a long time, VW has only been using DSG gearboxes in its passenger automobiles only since 2003. This application of the technology is still relatively immature. On a related note, VW previously conducted a recall of DSG-equipped VWs in the US and China three years ago.

The question of whether or not to issue another recall is very tough for VW. If the manufacturer can manage to resolve the problem by replacing gearboxes, it would help save a great deal of money and help them preserve their reputation. However, if a recall is found to be necessary, the manufacturer may suffer an even greater blow to its prestige.

VW's recent decision to stop using DSG technology in its newly released models may also be another way to address the problem. However, it remains to be seen how the manufacturer handles its current situation.

In the final question of the survey, participants were asked whether or not they believe VW has been disingenuous with Chinese consumers regarding potential problems in its other models. A full 70 percent agreed with this notion. 21 percent were undecided, while only nine percent believed that the DSG case was unprecedented.

The outcome of the DSG controversy may not only influence its performance in the Chinese market, but may very well be the deciding factor in whether or not it is able to fulfill its 2018 global sales target of ten million vehicles.