China TV report targets global automakers for faulty brake pads

[BEIJING] A China Central Television (CCTV) report on Sunday highlighted complaints by the country's safety watchdog this year that some imported brake pads destined for vehicles sold by global automakers, including Volkswagen AG and Toyota Motor were found to be faulty.

Leading foreign firms in China have sometimes been hit by consumer backlash after CCTV segments, with Volkswagen being targeted last year in two separate investigations.

The near 20-minute report cited the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), which issued statments in March and May, saying that of 467 shipments inspected, 226 shipments contained sub-standard brake pads.

While more than 60 brands were involved, nine foreign automakers and one supplier were found to have issues with 10 or more shipments, CCTV said. These included VW, Audi AG, Toyota, Jaguar Land Rover Ltd, BMW AG, Daimler AG's Mercedes-Benz, Hyundai Motor Co, Kia Motors Corp, Geely-owned Volvo and parts maker Textar.

The automakers did not respond immediately to request for comment. Textar could not be reached for comment.

The report cited a wide range of issues from potential brake failure at high temperatures to improper labelling.

A central government official last week warned that a US automaker could be penalised for monopolistic behaviour, sparking fears that China could be using the investigation to retaliate for US President-elect Donald Trump's comments questioning the "One China" policy.

China has not released further details on the anti-trust investigation since the official made the comments in state-owned China Daily last Wednesday.

REUTERS