FAW's new Besturn B50, a model that's set to go on sale in China and Russia, uses a near exact replica of VW's MQ200 transmission and a small car engine shared with the Chinese-market Golf and Polo. According to VW, FAW's engineers made miniscule dimensional changes to the engine and transmission, a move that the German automaker says violates its patent rights.
"This is simply a disaster," a VW representative told the newspaper.
VW and FAW have a long-standing joint-venture that dates back more than two decades, a move that has made the German automaker the biggest foreign brand in the Chinese new car market. In China, foreign brands must partner with a domestic firm under the Asian country's business laws.
FAW has stated that it will respond to the allegations soon.
"FAW is aware of the report and is paying high attention to the case because it is related to the cooperation between the two partners," FAW spokeswoman Shao Xin told the Global Times.
