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Nasdaq-listed Chinese electric carmaker Li Auto apologises for passing off recall of 10,469 Li ONEs as ‘upgrade’ offer

  • ‘Facing the problem and solving it efficiently’ is the way to go, company says
  • Li Auto faced a backlash after it said on November 1 that it was offering to ‘upgrade’ a component

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Li Auto says SUVs produced after June 1 have already been equipped with an upgraded version of the faulty component. Photo: Handout
Pearl Liu

Nasdaq-listed Chinese electric carmaker Li Auto apologised on Friday for trying to pass off a vehicle recall as an upgrade offer. The recall, which involves 10,469 Li ONE sport utility vehicles produced on or before June 1, covers about half of the company’s output so far.

The company faced a backlash after it said in a statement on November 1 that it was offering to “upgrade” a suspension component. On Friday, it said it would replace the component for free over the next three months.

“Many of our car users as well as industry people and media pointed out that the move is a recall, not an upgrade. We accept the criticism and apologise to our car users, the media and other friends in the industry over the incorrect and unreasonable move we made,” the company said in an open letter posted on China’s Twitter-like Weibo social-media platform on Friday. “Facing the problem and solving it efficiently is the way that Li Auto should take.”

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The company’s shares plunged by as much as 7 per cent following the recall announcement in pre-market trading on Friday.

The carmaker, started by serial entrepreneur Li Xiang in 2015, has delivered about 22,000 Li ONEs, its first model, since its launch last December. As of October 31 this year, the model had been involved in 97 crashes, 10 of them involving the component that needs fixing, according to company data.

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Li Auto said that SUVs produced after June 1 were already equipped with an upgraded version of the component.

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