Mazda to recall 640,000 vehicles globally over diesel engine issue

Mazda said it would recall around 230,000 vehicles at home and a total of around 410,000 units in overseas markets, excluding the US. (AFP)
Updated 08 November 2018
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Mazda to recall 640,000 vehicles globally over diesel engine issue

  • Mazda’s recall comes after domestic rival Subaru last week said it would recall 400,000 vehicles globally
TOKYO: Mazda on Thursday said it planned to recall around 640,000 vehicles globally to fix issues including a problem with the valve springs used in its diesel engines.
The Japanese automaker said it would recall around 230,000 vehicles at home and a total of around 410,000 units in overseas markets, excluding the US, where the automaker does not sell diesel models.
Mazda’s recall comes after domestic rival Subaru last week said it would recall 400,000 vehicles globally to fix a design flaw in the valve springs used in its engines, costs for which would eat into the automaker’s full-year profit.
Japanese automakers are dealing with a rise in quality issues ranging from faulty components to testing misconduct, which are increasing costs and raising questions about quality controls.


OECD warns of global economic slowdown

Updated 21 November 2018
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OECD warns of global economic slowdown

  • ‘We urge policy-makers to help restore confidence in the international rules-based trading system’
  • Trade tensions have already shaved 0.1-0.2 percentage points off global GDP this year

PARIS: The global economy has peaked and faces a slowdown driven by international trade tensions and tighter monetary conditions, the Organization for Economic Cooperation and Development warned Wednesday.
The OECD, which groups the top developed economies, said it had trimmed its growth forecast for 2019 to 3.5 percent from the previous 3.7 percent.
The 2018 estimate was left unchanged at 3.7 percent.
For 2020, the global economy should grow 3.5 percent, it said in its latest Economic Outlook report.
“The shakier outlook in 2019 reflects deteriorating prospects, principally in emerging markets such as Turkey, Argentina and Brazil,” it said.
“The further slowdown in 2020 is more a reflection of developments in advanced economies as slower trade and lower fiscal and monetary support take their toll.”
OECD chief Angel Gurria highlighted problems caused by trade conflicts and political uncertainty — an apparent reference to US President Donald Trump’s stand-off with China which has roiled the markets.
“We urge policy-makers to help restore confidence in the international rules-based trading system,” Gurria said in a statement.
Trade tensions have already shaved 0.1-0.2 percentage points off global GDP this year, the Economic Outlook report said.
If Washington were to hike tariffs to 25 percent on all Chinese imports — as Trump has threatened to do — world economic growth could fall to close to three percent in 2020.
Growth rates would drop by an estimated 0.8 percent in the US and by 0.6 percent in China, it added.
For the moment, the OECD puts US economic growth at 2.9 percent this year and 2.7 percent in 2019, unchanged from previous estimates, but trimmed China by 0.1 percentage point each to 6.6 percent and 6.3 percent.
It warned that “a much sharper slowdown in Chinese growth would damage global growth significantly, particularly if it were to hit financial market confidence.”
Laurence Boone, OECD Chief Economist, said “There are few indications at present that the slowdown will be more severe than projected. But the risks are high enough to raise the alarm and prepare for any storms ahead.”