Asbestos Recall in Australia Clouds China Automaker Plans
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An Australian recall by China’s two biggest car exporters for potential cancer-producing asbestos parts may threaten plans by Chinese automakers to expand into the U.S. and Europe amid intensifying competition at home.
Australia was to be the “testing area” for Chinese carmakers looking to enter larger markets and the recall has dealt a blow to those ambitions, according to Dunne & Co. Great Wall Motor Co. and Chery Automobile Co. recalled 23,000 of their vehicles sold in Australia after authorities found asbestos in some models.