China Volkswagen to Recall and Repair Santana Models for Free

Published By : 18 Sep 2012 | Published By : QYRESEARCH

The Volkswagen AG’s joint venture with Shanghai Automotive Industry Corp., Shanghai Volkswagen Automotive Ltd. has decided to recall approximately 7,550 units of manual series sedan models of Santana 1.8L that were manufactured from March 1 to August 28 this year. The news was officially confirmed by AQSIQ (Administration of Quality Supervision, Inspection and Quarantine).

Shanghai Volkswagen Automotive Co. Ltd. was established as a joint venture with 50-50 partnership between the German auto giant Volkswagen AG and Shanghai Automotive Industry Corp. The recall is in effect from September 08, and the car owners can contact the company or AQSIQ through the official website or directly on the hotline.

Shanghai Volkswagen will repair the flaw free of cost as per the statement given by the company. The affected models are said to have faulty steering column, which may lead to rare steering failures with the driver losing  vehicle control. In extreme situations under high pressures, the steering column may loosen, leading to steering control failure.

The recall has come at a time when Volkswagen is planning to boost sales in the world’s largest auto market – China. Volkswagen made changes to their strategy which now focuses more on the China auto market, where it registered higher growth than its German market. Shanghai Volkswagen has registered a YoY growth of 11.6% in total sales for the current year in the past three quarters, and has sold 836,074 car models.

The German auto giant plans to increase production of its vehicles in China to 3 million units by 2014, and later on to 4 million units by 2018. The group has already registered production of 2.3 million vehicles for the financial year 2011 with an operating profit of USD 3.3 billion on pro-rata basis. The Group has already started preparations to boost its production capacity in China.
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