Wolves cannot breed when they're sat, so they need to be standing. This means that they would teleport to you.
Breeding harnesses cannot be placed on wolves.
When wolves DO breed, the baby is spawned under one of the parents (as vMC animals do).
So, is there any way to automate wolf breeding?
I want to create an automatic companion cube factory... just for fun!
Plus, I have this huge cliff face, which I've taken back a few blocks (may do it with the entire cliff) just outside my new home, and I want to have the BTW Logo on it, with an automatic companion cube factory just inside :D