According to an official statement, which was posted on the website of the China General Administration of Quality Supervision, Inspection and Quarantine, Bayerische Motoren Werke AG (BMW) will withdraw a total of 232 098 vehicles in China because of a defective engine-control component. Currently, China is considered as the largest market of the car maker.
The company is going to make the recall due to a problem with a vehicle component, and more specifically, with the bolts attached to vehicles engine control system. BMW explained that the bolts could get loose or break, which on the other hand could make the engine stop.
The initial date of the withdrawal, which was published in the statement of the agency is June 18th. It also became clear that the defective components will be replaced with new ones free of charge by the Trading Automotive unit of BMW, which is responsible for the companys vehicles imports in China, and by BMW Brilliance Automotive Ltd, which manufactures the companys cars locally.
According to BMWs statement, 138 534 sedans, which were imported in China, are planned to be recalled. The Chinese joint venture of the company – Brilliance China Automotive Holdings Ltd – is going to withdraw 93 564 vehicles.
The upcoming recall is considered the largest one for the company on the territory of China since January 2013 when a law broadening manufacturers liability took effect.
One of BMWs spokesmen commented on the recall, saying the problem is “minor”. He also explained that the withdrawal of the defective vehicles was “voluntary”. Bernhard Santer also explained in an e-mail that Bayerische Motoren Werke AG is to check its vehicles distributed on other markets, but emphasized on the fact that the withdrawal in China is not part of a global recall.
Bayerische Motoren Werke AG rose by 0.28% to 92.91 euros per share in Frankfurt by 11:40 GMT, marking a one-year change of +35.85%. The car maker is valued at 59.54 billion euros. According to the Financial Times, the 33 analysts offering 12-month price targets for Bayerische Motoren Werke AG have a median target of 96.00 euros, with a high estimate of 120.00 euros and a low estimate of 79.00 euros. The median estimate represents a 3.62% increase from the last price of 92.65 euros.
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