BMW to Recall 232,098 Vehicles in China for Bolt Defect

Bayerische Motoren Werke AG (BMW), which counts China as its biggest market, said it will recall 232,098 vehicles in the country for a defective bolt design. Shares of its partner Brilliance China Automotive Holdings Ltd. fell.

BMW will recall 138,534 imported sedans, while its Chinese joint venture will call back 93,564 vehicles, according to a statement posted on the China General Administration of Quality Supervision, Inspection and Quarantine website yesterday.

The recalls are the largest for the brand in China since a law that broadened manufacturer liability took effect in January 2013, and involve a defect that can cause the external bolts on the engine control system to loosen or break, and affect the sealing. Under certain circumstances, this may result in damage to the engine or cause it to fail to start, according to the statement.

Brilliance’s shares fell 1.5 percent to HK$12 at the close of trading in Hong Kong today, while the benchmark Hang Seng Index rose 0.2 percent.

BMW’s China joint venture submitted a vehicle recall application last month related to the engine bolt, according to a March 14 statement on the quality inspector’s website.

The company is checking for the engine defect in other markets and will communicate the results once the investigation is completed, Bernhard Santer, a BMW spokesman, said in an e-mail yesterday.

Volkswagen AG, Europe’s largest auto manufacturer, undertook a repair program for more than 380,000 vehicles in China last year after state television featured complaints about vibrations, loss of power and sudden acceleration in Golfs and other cars.

To contact Bloomberg News staff for this story: Alexandra Ho in Shanghai at aho113@bloomberg.net

To contact the editors responsible for this story: Chua Kong Ho at kchua6@bloomberg.net Gregory Turk

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