Great Wall, Chery expand in US and Europe threatened by a recall in Australia

Article by Christian A., on August 22, 2012

The plan of Great Wall Motor Co. and Chery Automobile Co., two of China’s largest auto exporters, to expand into the U.S. and Europe is being threatened by a recall in Australia and the rising competition in their home market. The recall in Australia involves potential cancer-producing asbestos components. Industry researcher Dunne & Co. said that Australia is set to be the "testing area" for Chinese automakers that want to enter larger markets.

About 23,000 of their vehicles were recalled in Australia after authorities detected asbestos in certain models. Michael Dunne, the head of Dunne & Co, said that this is a major setback for the individual companies and development of the industry. Products are built in China and so the use of asbestos had raised concerns about their health and safety.

China, which has been troubled by frequent health scares, has been found to sell increased excessive lead found in toys, melamine-tainted milk and pet food killing children and dogs. The official trade chamber said that exports from the country could increase by 50% and that exports from the country could increase by about 50% this year, extending record shipments in 2011.

The shares of these companies have declined because of the discovery. The company has been banned in 55 nations because of the fiber's links to cancer and respiratory illnesses. This will undermines the nation's carmakers in their push to roll out their brands in overseas markets.

Topics: recall

If you liked the article, share on:

Comments

Recommended

Opel revealed it has sweetened the pot for 2017 Insignia Grand Sport customers with the Opel Exclusive program. Through this program, the brand hopes to introduce a wide selection of...
by - February 22, 2017
Fireball Performance Cars has been known to make the fastest sixth generation LT1 Camaros in the world. Once again it has managed to walk the talk as it hit a...
by - February 22, 2017
The North American unit of German premium carmaker BMW is recalling around 19,000 units of its BMW i3 electric vehicle because of the risk of fuel leak. You may ask,...
by - February 22, 2017
A publication by the U.S. Patent and Trademark Office revealed that Honda is still looking into the Project 2&4 Concept. Officially unveiled during the 2015 Frankfurt Motor Show, the Project...
by - February 22, 2017
Barely a month before its official debut, Hyundai gave everyone a taste of what’s to come with the 2017 Hyundai i30 Wagon. Despite what little was shown, it did not...
by - February 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries