VW recalls 4.86 mn vehicles in China over airbag concerns

Beijing, September 14

Volkswagen will recall almost five million vehicles in China over airbag concerns, Chinese authorities said on Thursday, dealing a new blow to the German automaker in the world’s largest car market.

VW and its joint ventures with Chinese partners FAW and SAIC will start withdrawing 4.86 million vehicles fitted with potentially faulty airbags made by Japan’s bankrupt airbag giant Takata from March 2018, according to China’s top consumer watchdog.

The announcement came just 10 days after VW and its local partners agreed to recall 1.82 million vehicles owing to a faulty fuel pump.

In March Volkswagen recalled nearly 6,80,000 premium Audi cars in China over defects in coolant pumps that could lead to engine fires, and another 572,000 due to potential problems arising from leaks in the panoramic sunroof.

The latest recall involves vehicles made between 2005 and 2017, according to the General Administration of Quality Supervision, Inspection and Quarantine.

Of the vehicles being recalled, more than 4.7 million units were made in Chinese factories and 103,573 are imports.

Takata has recalled some 100 million airbags produced for some of the largest automakers, including about 70 million in the US, due to the risk that they could improperly inflate and rupture, potentially firing deadly shrapnel at the occupants.

The defect has been linked to 16 deaths and scores of injuries worldwide.

China is a crucial market for VW, which sold nearly four million vehicles in the world’s biggest auto market last years.

VW is still trying to recover from the controversy after it admitted in 2015 to equipping its diesel cars with defeat devices to evade emissions tests.

The company pleaded guilty in March to charges stemming from “dieselgate” and agreed to pay $4.3 billion in penalties—on top of $17.5 billion in civil settlements.

Volkswagen still faces legal challenges in Germany and worldwide, and has so far set aside more than 22 billion euros ($24.4 billion) to cover costs. Experts estimate the final bill from the scandal could be even higher. AFP