General Motors is on the verge of dealing with a major blow in the world’s largest automotive market, China, over concerns about faulty air bag inflators manufactured by Japanese automotive giant, Takata. The U.S. automaker, along with its Chinese joint venture partner, Shanghai GM, is expected to withdraw over 2.5 million cars as an aftermath, cite reliable sources. The companies would be starting their first recall from the end of October, this year, with 13,492 imported Opel and Saab vehicles, followed by another round of withdrawal process involving over 2.51 million Opel and Buick cars that are claimed to begin from December 29, 2017.
The recall comes after a similar kind of withdrawal announcement that made to the headlines last week by Volkswagen and its joint venture in China. The German carmaker along with its joint venture partners has announced to recall approximately 4.86 million cars over Takata’s air bag issue. The vehicles that are claimed to be recalled by General Motors are equipped with hazardous air bag inflators that have the potential to create an explosion and could spray fatal shrapnel inside the car. This is not the first time Takata has been dragged into a controversy. In fact, citing reliable sources, Takata air bags inflators have been closely linked with at least 180 injuries and 16 casualties on a global scale. Undoubtedly, the defect has led to the biggest recall in the history of automotive market.
Reportedly, Takata has till date recalled almost 100 million airbags that the Japanese manufacturer had produced for some of the top notch automotive giants, with U.S. procuring the major chunk of this humongous figure. Estimates claim that U.S. accounted for almost 70 million faulty air bag inflators. As far as China is concerned, the defective airbag case involves almost 37 automotive manufacturers encompassing more than 20 million vehicles, out of which 24 automakers had already recalled 10.59 million cars by June end.
It goes without saying that the China automotive market is crucial for international carmakers. General Motors having a strong presence in the country is an evidence to this fact. Accounting for a sale of around 3.87 million vehicles in 2016, the U.S. automaker is claimed to be the second largest foreign manufacturer in China market, after Volkswagen. In order to maintain its business position and commitment in the market, GM has agreed to replace the defective airbags with new ones free of cost, cite reliable sources.
Satarupa develops content for Market Size Forecasters. An electrical engineer by qualification, she worked for two years in the electrical domain before switching her professional genre. Following her childhood passion, she opted for a career in writing and now pens down articles pertaining to marke...