Volkswagen, partners to recall 4.86 million vehicles in China over Takata airbags

Volkswagen delivered 3.98 million vehicles in China last year. (Reuters)
Updated 14 September 2017
0

Volkswagen, partners to recall 4.86 million vehicles in China over Takata airbags

BEIJING/SHANGHAI: Volkswagen and its Chinese joint ventures FAW-Volkswagen and SAIC Volkswagen will recall 4.86 million vehicles in China due to potential issues with Takata Corp. air bags, a blow to the carmaker in the world’s largest auto market.
The recall comes after Chinese watchdogs asked the German automaker as well as General Motors and Daimler’s Mercedes-Benz to recall vehicles with Takata air bags earlier this year.
Official Chinese estimates show over 20 million cars in China 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 recall in automotive history and eventual bankruptcy of the Japanese maker.
Volkswagen told Reuters in an e-mailed 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, Volkswagen Group China therefore made this recall 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 said in a statement that VW China would recall 103,573 vehicles, FAW-Volkswagen 2.35 million vehicles and SAIC Volkswagen 2.4 million vehicles.
The watchdog said the recall would run from March next year into 2019.
Volkswagen 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 brand, is not the only carmaker hit by recalls in China 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 recall 1.26 million vehicles.
Volkswagen delivered 3.98 million vehicles in China last year, an increase of 12.2 percent on 2015, making it the biggest foreign automaker in the country.


Glencore launches $1 billion additional share buyback

Updated 58 min 4 sec ago
0

Glencore launches $1 billion additional share buyback

  • Glencore said in July it would buy back shares worth up to $1 billion in a program of purchases running to the end of 2018
  • Many mining stocks have pared gains over the past few months as metals markets weakened

LONDON: Commodities trader and miner Glencore said on Tuesday it would repurchase more of its shares worth up to $1 billion, increasing the size of an existing buyback program that followed a subpoena from US authorities.
Glencore said in July it would buy back shares worth up to $1 billion in a program of purchases running to the end of 2018. It has now extended the program to the end of February 2019.
The London-listed miner, with a market capitalization of $61 billion, announced plans to repurchase shares after the US government investigation into bribery and corruption sent the stock down more than 15 percent since the start 2018.
Companies across the mining industry have been handing money back to shareholders after a recovery from the mining and commodity crash of 2015-16 and in response to pressure from investors not to spend cash on buying assets that they say may never deliver returns.
Global miner Rio Tinto said last week it will return $3.2 billion to shareholders from its sale of Australian coal assets in addition to existing buyback programs.
Glencore’s share price had already been hit by concerns about political risk in Democratic Republic of Congo, where it mines just over a quarter of the global output of cobalt, because of a mining code that was signed into law in June.
After publishing first-half results just below analyst forecasts in August, the company, which has aggressively slashed its debt since 2015, said it would favor share buybacks over deal-making.
Many mining stocks have pared gains over the past few months as metals markets weakened in response to global trade tensions and uncertainty about Chinese demand.