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VW recalls nearly 5 million vehicles in China over Takata airbags
Reuters | 2017/9/15

BEIJING -- Volkswagen Group and its Chinese joint ventures, FAW-Volkswagen and SAIC Volkswagen, will recall 4.86 million vehicles in China due to potential issues with Takata airbags, in a blow to the company in the world's largest auto market.

The recall comes after Chinese watchdogs asked VW as well as General Motors and Mercedes-Benz to recall vehicles with Takata airbags earlier this year.

Official Chinese estimates show over 20 million cars in China had airbags made by Takata, which have been linked to at least 16 deaths and 180 injuries globally. The airbags have the potential to explode with too much force and spray shrapnel.

The defect led to the biggest recall in automotive history and forced the Japanese supplier into bankruptcy.

VW told Reuters in an emailed statement on Thursday that after discussions, Chinese authorities had concluded the defect could occur in rare cases when the airbag 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 airbag 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 will recall 2.35 million vehicles and SAIC Volkswagen will call back 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 airbag replacements on the recalled vehicles.

Volkswagen is not the only carmaker hit by recalls in China related to Takata airbags.

As of the end of June, 24 out of 37 affected automakers had recalled 10.59 million vehicles. Another five companies have made plans to recall 1.26 million vehicles.

VW delivered 3.98 million vehicles in China last year, an increase of 12 percent on 2015, making it the biggest foreign automaker in the country.

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