GM Recalls 1.5 Million Vehicles For Safety Issue In China; Ford To Recall 80,000 SUVs For A Steering Part Flaw

 
on December 27 2013 7:25 AM
Buick_China
Dust-covered Buick cars, made by U.S. carmaker General Motors, are seen lined up on the Binhai docks area in the Chinese coastal city of Tianjin, in this picture taken on March 2, 2011. Reuters/David Gray

General Motors Company (NYSE:GM) and its local partner will recall nearly 1.5 million vehicles in China due to safety issues related to a defective part in one of the biggest recalls in the country. In a separate recall, Ford Motor Company (NYSE:F) said it will recall about 81,000 cars for a steering defect.

Shanghai General Motors Co Ltd, a 50-50 joint venture of GM and Shanghai Automotive Industry Corporation, or SAIC, will recall 1.46 million Buick and Chevrolet sedans due to a defective fuel pump bracket, the country’s quality regulator said on Friday, according to a Reuters report.

The affected cars were locally produced between 2006 and 2011, the General Administration of Quality Supervision, Inspection and Quarantine said, adding that the recall will start on Dec. 30. The defective brackets, which can result in fuel leaks in extreme situations, will be replaced by GM.

In a separate statement, the quality watchdog said that Ford and its partner, Chongqing Changan Automobile Co., will recall more than 80,000 Kuga sport-utility vehicles in China, because of a defect in its steering parts. Dearborn, Mich.-based Ford’s recall will start on Feb. 21, the regulator said. 

In November, Volkswagen's (ETR: VOW) Chinese unit had recalled nearly 640,309 vehicles to check if the company was using synthetic oil instead of mineral oil.

Detroit-based GM has sold more than 800,000 Buick cars in China and 200,000 Buick cars globally, the company said in a statement on Friday. GM’s total sales in China for the January-November period were 2.89 million vehicles, marking an annual growth of 11.4 percent, while Ford has sold more than 840,000 vehicles during the period in the country with an annual growth of 51 percent.

However, German automaker Volkswagen is set to sell more vehicles in China than GM for the first time in nine years. Both companies had sold more than 3 million vehicles in the world's largest auto market by the second week of December, and Volkswagen currently has a lead of about 70,000 cars over GM, Bloomberg News reported. 

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