Mercedes-Benz, JVs to recall over 350,000 vehicles in China

The recall by Mercedes-Benz and its Chinese joint ventures will begin from October 15 and will include domestically built and imported cars produced from 2006 through 2012. (Reuters)
Updated 13 October 2017
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Mercedes-Benz, JVs to recall over 350,000 vehicles in China

BEIJING: Mercedes-Benz, the luxury brand of German carmaker Daimler, and its Chinese joint ventures will recall 351,218 vehicles due to potential issues with air bags made by Japan’s Takata, China’s quality watchdog said on Friday.
The General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) said on its website that it was concerned about risks arising from possible defects in the cars’ air bag inflators.
Official Chinese estimates showed 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 deploy with too much force and spray shrapnel.
The defect led to the biggest recall in automotive history and eventual bankruptcy of the Japanese maker which had become burdened with tens of billions of dollars worth of liabilities.
The recall by Mercedes-Benz and its Chinese joint ventures will begin from October 15 and will include domestically built and imported cars produced from 2006 through 2012, with models including the SLK-Class and A-Class, the AQSIQ said.
It follows similar recalls by General Motors and Volkswagen last month.
The Chinese watchdog asked the three automakers in July to recall vehicles in China affected by potentially faulty Takata air bags. Up to that time, the automakers had proposed recalling a small number of vehicles for testing and analysis.


S&P warns it could downgrade Nissan ratings over Ghosn scandal

Updated 13 min 53 sec ago
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S&P warns it could downgrade Nissan ratings over Ghosn scandal

TOKYO: Ratings agency S&P warned Tuesday that Nissan faces a possible debt downgrade after its chairman Carlos Ghosn was arrested for alleged financial misconduct.
S&P Global Ratings announced a “CreditWatch with negative implications” and said it “also placed all of our ratings on Nissan’s overseas subsidiaries on CreditWatch negative.”
It warned the firm’s profitability could “weaken substantially” in fiscal years 2018 and 2019 if Ghosn’s alleged misconduct affected Nissan sales or hurt its alliance with Renault and Mitsubishi Motors.
It said any downgrade “is likely to be by one notch.”
“Although Nissan said it aims to identify its governance issues and hammer out preventive measures, we think rebuilding its management culture swiftly will not be easy.”
Auto titan Ghosn, who headed the automaker alliance, was arrested in Tokyo on Monday on allegations that include systematically under-reporting his income.
His detention marks a stunning fall from grace for the Brazil-born executive who is credited with resurrecting Nissan through bold restructuring measures.
Ghosn has yet to comment on the allegations against him. Nissan’s board is set to meet on Thursday to discuss dismissing him.