GM to Recall 1.46 Million Cars in Chinese Market
One day after both Volkswagen AG and General Motors announced they would surpass 3 million cars sold in China this year, with Volkswagen leading by some 70,000 units, GM’s Chinese business affiliate, Shanghai General Motors Co Ltd., reported plans to recall 1.46 million cars because of a faulty fuel pump bracket. In addition, Ford Motor Co. announced it will recall some 81,000 autos through its Chinese partner, Chongqing Changan Automobile Co Ltd. If you’ve been thinking about buying GM’s shares, they are slightly discounted this morning after falling more than 1 percent since the market’s open today. Despite rising sales for VW’s Chinese unit, it has not been immune from auto-related bugs either. The VW unit in China last month recalled about 640,000 vehicles to ensure that they used the appropriate oil to avoid gearbox-related electronic flaws. The same VW unit also took more than 200,000 Tiguan compact sport-utility vehicles off the road due to a risk of a partial light malfunction.