BMW Recalls 1.6 Million 3 Series Cars As Precaution To Deal With Air Bag Issue

By RTT News, 

( - German luxury car maker Bayerische Motoren Werke AG or BMW Group (BAMXY, BAMXF, BMW.L) announced Wednesday a worldwide voluntary recall of 1.6 million BMW 3 Series model vehicles for risk of faulty airbag activation due to potentially faulty gas generator installed in it.

The automaker noted that the 3 Series vehicles produced between May 1999 and August 2006 are involved in the recall.

The recall also includes about 574,000 BMW 3 Series vehicles in the U.S. to replace the passenger-side front airbag as part of the worldwide recall. BMW has informed the U.S. National Highway Traffic Safety Administration (NHTSA) of its intent to voluntarily recall the affected vehicles.

BMW said rare cases of problems with similar airbag systems from the same supplier, reportedly Japan'sTakata Corp., were seen on vehicles produced by competitors. However, it is not aware of a case involving a BMW vehicle.

Takata is one of three major manufacturers of airbags and is a key supplier for the global auto industry. The airbags supplied by this supplier has reportedly seen more than 10 million vehicles from seven major automakers being recalled for similar issues over the past five years.

BMW said it will replace passenger-side front airbags due to potential problems involving rupturing airbag inflators. Additionally, it will also check all BMW 3 Series models (E46) of the pre-predecessor generation equipped with this airbag module for faults.

BMW added that the replacement or rectification of the problem will take about 1 hour, with costs of the quality measure to be borne by BMW.

BMW noted that the current recall is an extension of production period of the recall campaign it announced in May 2013, when it recalled 42,000 3 Series vehicles (E46) of the pre-predecessor generation. These vehicles are excluded from the current replacement campaign.

Apart from these, BMW in May recalled 232,098 cars, including both imported and locally manufactured vehicles, in China owing to potentially defective screws. This may result in engine not starting or could cause mechanical damage and there may be security risks.

The recall included 93,564 3 Series and 5 Series cars that were manufactured in China, in a joint venture with Brilliance China Automotive Holdings, as well as 138,534 vehicles of the 1 Series, 3 Series, 5 Series, 6 Series, 7 Series, X1, X3, X5, X6, Z4 imported by BMW (China) Automobile Trade Co., Ltd.

Later in May, BMW also recalled more than 156,000 cars and SUVs in the U.S. because the engines can lose power or stall due to loose bolts that hold a camshaft housing.

On Frankfurt's Xetra, BMW shares are currently trading on Wednesday at 94.55 euros, up 2.07 euros or 2.24% on a volume of 0.90 million shares.

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This article appears in: News Headlines

Referenced Stocks: 7312 , BCAUY , BMW

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