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VW, China partners to recall 4.86 million vehicles over Takata airbags

Reuters  |  BEIJING/SHANGHAI 

BEIJING/(Reuters) - AG and its Chinese joint ventures FAW-and SAIC will 4.86 million vehicles in due to potential issues with Takata Corp air bags, a blow to the carmaker in the world's largest auto market.

The comes after Chinese watchdogs asked the German automaker as well as General Motors Co and Daimler AG's Mercedes-Benz to vehicles with Takata air bags earlier this year.

Official Chinese estimates show over 20 million cars in had air bags made by Takata, which have been linked to at least 16 deaths and 180 injuries globally. The air bags have the potential to explode with too much force and spray shrapnel.

The defect led to the biggest in automotive history and eventual bankruptcy of the Japanese maker.

told in an emailed statement on Thursday that after discussions, Chinese authorities had concluded the fault could occur in rare cases when the air bag was deployed, "which may create a potential safety risk".

"Acting upon advice from the Chinese safety authority, Group therefore made this decision."

The carmaker said it had not received any reports related to the issue affecting its vehicles globally, and that a parts analysis had found Takata air bag inflators - the suspected cause of the defect - were in "normal condition".

China's General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) said in a statement that VW would 103,573 vehicles, FAW-2.35 million vehicles and SAIC 2.4 million vehicles.

The watchdog said the would run from March next year into 2019.

said the carmaker and its Chinese partners would provide free air bag replacements on the recalled cars.

Volkswagen, which also owns the high-end Audi AG brand, is not the only carmaker hit by recalls in related to Takata air bags.

As of the end of June this year, 24 out of 37 affected automakers had recalled 10.59 million vehicles. A further five had made plans to 1.26 million vehicles.

delivered 3.98 million vehicles in last year, an increase of 12.2 percent on 2015, making it the biggest foreign automaker in the country.

(Reporting by Monitoring Desk and Adam Jourdan in SHANGHAI; Editing by Christopher Cushing)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, September 14 2017. 13:47 IST
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