GM venture to recall nearly a million vehicles in China

BEIJING (Pakistan Press Club) – One of General Motors Co’s (GM.N) China ventures will recall nearly a million vehicles due to fuel tank problems, the country’s quality watchdog said on Friday, the latest in a spate of major auto recalls in China over the last few months.

SAIC-GM-Wuling Automobile Co Ltd is a three-way tie-up between SAIC Motor Corp Ltd (600104.SS), General Motors and Guangxi Automobile Group, formerly known as Wuling Motors.

The recall of the 938,686 vehicles involves two models of the venture’s popular Baojun cars, a high-volume, entry-level brand for the Chinese market, which sold more than 2 million vehicles last year.

GM did not immediately respond to a request for comment.

This year has seen a number of major car recalls in China, the world’s biggest auto market.

China’s quality watchdog said in September GM and its China ventures would recall over 2.5 million vehicles over airbag issues. That followed a similar 4.86 million vehicle recall by Volkswagen AG (VOWG_p.DE) and its Chinese joint ventures.

GM produces vehicles in China through a joint venture with SAIC, the country’s largest automaker, as well as the three-way venture that is now working on an electric battery car called the Baojun E100 to help meet strict new-energy vehicle quotas.