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Volkswagen
BusinessChina Business

Record car sales on line as quality questioned

China is key to German carmakers' fortunes but there may be bumps in the road

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Joachim Schmidt, sales chief at Mercedes. Photo: EPA
Bloomberg

Volkswagen, Daimler and BMW posted record sales for last year, fuelled by demand in China.

But this year, that growth is at risk as the government in Beijing steps up scrutiny of the carmakers and media outlets question their quality.

VW recalled 384,181 vehicles in China last month after state television featured complaints about vibration, loss of power and sudden acceleration in Golfs and other cars. China Central Television also reported that BMW, Audi and Mercedes owners experienced dizziness from asphalt in their vehicles.

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"Of course we take the concerns in China very seriously and are investigating the matter," Joachim Schmidt, sales chief at Mercedes, said last week. He said he was surprised by the complaints.

"The components we use have been thoroughly tested before, and we use them in vehicles across the globe," Schmidt said. "You would assume that customers outside China might notice something similar."

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The reports come as Chinese authorities have vowed to unmask producers of low-quality or dangerous goods. While domestic companies have not been spared scrutiny, foreign firms, such as McDonald's, Carrefour and Apple, are frequent targets.

China, the world's largest car market, is critical to German carmakers' ambitions of record deliveries this year, even as European sales contract for a sixth consecutive year.

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