BMW Brilliance Automotive – the joint venture operating for the Germans in China – will recall 143,215 vehicles due to a problem related to their electric power steering system.
The automobiles involved include some of the 5 Series manufactured between 2009 and 2012, according to the Web site of China’s General Administration of Quality Supervision, Inspection and Quarantine. This announcement also comes after another problem for the BMW business, which planned to expand one of its plants in the country but failed a week ago to secure approval from China’s environment ministry. According to the latter, the plan was sent back to the German company citing inadequate wastewater analysis and its failure to meet the government’s anti-pollution targets.
Meanwhile, not only BMW, but also the rest of the foreign luxury car brands have been under intense media scrutiny, after state media spotlight turned to them and criticized the carmakers for setting prices too high in China. According to the Xinhua news agency, all the foreign carmakers easily make exorbitant profits by selling imported luxury cars in China and should face an anti-trust investigation. Volkswagen’s Audi division responded to the allegations and said vehicle prices in China were comparable to other countries once taxes and other factors were taken into account.