FAW-VW have announced the extension of the joint venture between the two companies ahead of time. The original agreement was due to expire in 2016 but as a show of confidence in the joint venture both Volkswagen and First Automobile Works hammered out a new deal at the recent FAW-Volkswagen advisory board meeting in Foshan, China.
The talks also mentioned upon FAW’s recent IPR infringement on VW’s own technology, FAW was caught red handed earlier this year copying VW’s gearbox and engine technology in cars that were sold to overseas markets. President of FAW Group, Xu Jianyi, was mentioned in the official press release:
Xu Jianyi emphasized the great respect and mutual trust FAW Group and Volkswagen Group have cultivated during their long-standing partnership. Within the framework of this cooperation, no one has infringed the other sideâ€™s rights. The success of the partnership has laid a solid foundation for future cooperation between FAW Group and the Volkswagen Group.
So it seems the issue of IPR is no longer a major issue when it comes to making cars in the PRC. FAW-VW currently employs over 20,000 people and makes a wide range of VW and Audi vehicles in the China market including the best selling VW Golf, Magotan, Audi A4L, A6L and Q5.