China automakers' export plans clouded by asbestos recall
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 United States and Europe amid intensifying competition at home.
Australia was to be the "testing area" for Chinese automakers 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.
"It's a significant setback for the individual companies and development of the industry," said Michael Dunne, head of industry researcher Dunne & Co., in a telephone interview yesterday. "Chinese car companies will continue to push overseas, but you can bet that other countries that they are moving into, or are exporting to, are going to take a closer look on what's on offer."
The use of asbestos in exports raises concerns about the quality and safety of products made in China, which has struggled with repeated health scares that include excessive lead found in toys, melamine-tainted milk and pet food killing children and dogs.
Read more: http://www.autonews.com/article/20120815/GLOBAL03/308159780#ixzz23dlWDTeQ
It doesn't end, buy a Chinese car, maybe get an asbestos related disease.
Chery said workers mistakenly used a wrong batch of parts that wasn't meant for cars to be exported to Australia, which means they allow asbestos on parts used in China.
Giant face palm.
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