Volkswagen CEO: Will Start Investigation of FAW Infringement and Firmly Maintain Patent

According to the German "Business Daily" (Handelsblatt) reported on August 30, Volkswagen CEO Martin Wendeng expressed concern about the incident of infringement of its patent ownership by FAW Group and will firmly maintain the company's patents.

Wen Deen said: "If there are pending issues concerning patents, we will negotiate with our partners (FAW Group) and we will definitely not accept this situation. We will do our utmost to protect our intellectual property rights, including in the Chinese market. The relevant FAW plant is located in Changchun, China. We are paying close attention to the matter and will conduct field investigations.” This is Wendeng's first public comment on the FAW infringement.

Previously, the "Business Daily" reported on July 27 that anonymity of Volkswagen executives revealed that it had initiated an investigation into the FAW Group's infringement. Volkswagen alleges that FAW is copying at least four VW patent technologies, including the MQ 200 transmission and the EA111 engine, for its own-brand models, thus putting pressure on Volkswagen Group's models. Volkswagen believes FAW will use the MQ 200 transmission for the Pentium B50; this A-class vehicle will be exported to the Russian market and compete with Volkswagen's Skoda.

Wendorn currently accompanies the German Chancellor Angela Merkel to visit China to negotiate the business of the general public in China. Volkswagen is setting up a DSG gearbox production plant in Tianjin. Volkswagen will invest $290 million in the plant as part of a total investment of $927 million. The plant will be put into production as soon as 2014 and will provide 1,400 jobs for the local area.