Volkswagen recalls over 384,000 cars in China

SHANGHAI (REUTERS) - Volkswagen AG, China's largest foreign carmaker, will recall 384,181 cars in China to fix a long-standing gearbox problem, China's quality watchdog said on Wednesday.

The recall will be effective from April 2, the General Administration of Quality Supervision, Inspection and Quarantine of China said in a statement on its website.

The recall comes after the German automaker was named in state-run China Central Television's annual investigative special on corporate malpractice aired on Friday.

The TV show, one of the most widely watched in China, said that the direct shift gearbox (DSG) transmission, a long-standing issue for Volkswagen, was causing cars to speed up or slow down during driving.

VW, which makes cars in China in partnership with SAIC Motor Corp and FAW Group, sold 2.81 million cars in the country last year. It plans to almost double production capacity in the country to 4 million in the next five years.