Volkswagen AG's Shanghai venture announced a recall of 2,440 of its Passat model cars this week because of problems with the locking system, China's safety regulator said today.

The General Administration of Quality Supervision, Inspection and Quarantine said in a statement on its Website the recalled cars were produced by Shanghai Volkswagen Automotive Co between August 11 and August 24.

Shanghai Volkswagen is a 50-50 joint venture between the German automaker and Shanghai Automotive Industry Corp, or SAIC. The venture was formed in 1984, when VW was the first major foreign car company to enter the China market.

Shanghai Volkswagen was China's third biggest passenger-car maker by sales last year, reporting sales of 340,600 vehicles, according to data from the China Association of Automobile Manufacturers.

VW last year announced an "Olympic Program" intended to revitalize its brand in China. It has launched "tailor-made" models such as the Passat Lingyu and Sagitar, a remade version of the Polo, and two Skoda models.

SAIC is also the local partner of General Motors Corp.

(Shanghai Daily via Agencies November 16, 2007)