Investigation

In a recent development, Kumho Tires, a major tire manufacturer in China, has decided to recall some of its products due to quality issues. This decision comes after suspicions that the company used excessive recycled tires to save costs, as suggested by Xu Minfeng, a car analyst with Central China Securities.

The Chinese regulatory authorities have announced the timing and method of the recall of defective products manufactured by Kumho in China. This recall affects a significant number of vehicles, with BMW-Brilliance announcing a recall of over 140,000 cars, and Volkswagen recalling more DSG-equipped cars in China due to the Kumho tire issue. General Motors' Shanghai venture has also stated that the Kumho tires used in their vehicles were produced in Nanjing and will assist with consumer complaints or inquiries.

The issue stems from the excessive use of recycled tires as raw material in Kumho's manufacturing facility in Tianjin. This revelation has raised concerns about auto safety, leading to an extremely busy service hotline at car retailers in Shanghai. Some consumers have even postponed their car purchases due to these concerns.

Kumho Tires supplies tires to the Chinese ventures of several major automakers, including General Motors, Hyundai Motor, Peugeot Citroen Automobile, Volkswagen AG, and Great Wall Motor. However, it appears that the tires produced at the Tianjin plant may be the ones causing the issue. Chery Automobile has confirmed that none of the Kumho tires used on some of its vehicles were made at the Tianjin plant.

Lee Han-seop, head of Kumho's China subsidiary, publicly apologized for the issue and promised to recall all defective products. He assured consumers that the company is committed to maintaining the highest standards of quality and safety. Details about when and how the recall will be conducted have not been provided as of yet.

CCTV reported that these tires could potentially rupture, which has further heightened concerns among consumers. One consumer, identified as Wu, has stated that they will wait until all defective tires are recalled before making a purchase.

This recall comes at a critical time for Kumho, as China has surpassed the U.S. as the world's largest auto market and accounts for 30 percent of Kumho's global sales. The company entered China in 1994 and has factories in Chinese cities including Tianjin, Nanjing, and Changchun.

As the situation unfolds, consumers are advised to stay informed and follow any instructions provided by the regulatory authorities or their respective automakers regarding the recall of Kumho tires.