Maruti Suzuki to recall over 100,000 A-Star Cars

Maruti Suzuki India Ltd. said Tuesday it will recall more than 100,000 units of its A-Star small cars to replace a defective part in the fuel tank. The news caused shares of India’s biggest auto maker by sales to decline as much as 4.4%. The recall, which will also include exported A-Star cars, will be done to replace the “fuel pump gasket and Q ring,” said a spokesman at the local unit of Suzuki Motor Corp.

The A-Star was introduced in India in November 2008. Maruti’s recall follows close on the heels of a similar move by Honda Motor Co’s local unit. On Jan. 30, Honda Siel Cars India Ltd. said it will recall 8,532 City sedans made in 2007 because of defective power-window switches that can cause a fire. Globally, Toyota Motor Corp. recently recalled eight million cars while Honda Motor recalled several hundred thousand cars to fix airbag issues as well as defective power-window switches.

The Maruti spokesman didn’t disclose the cost of the recall, but said the final cost will be shared with the part supplier. “In case fuel is filled up to the brim, beyond the fuel auto cut off position, a possible fuel leakage from the fuel pump mounting area may take place,” the spokesman said, adding that the company is yet to receive any complaints from customers.

“As a proactive step, we decided to check all vehicles from the lot, around 100,000 units, including those exported.” He said the defect was noticed last November in some vehicles and the company began contacting customers by December 2009. The affected vehicles belong to a lot manufactured until Aug. 22, 2009. “We are midway through the checking activity and hope to complete it soon,” the spokesman said.

Shares of Maruti fell as much 4.4% on news of the recall. They closed 3.2% lower at 1,336.85 rupees ($29) on the Bombay Stock Exchange, compared with the benchmark index that remained unchanged.

——————————–

Source: The Wall Street Journal 23/2/2010

Related posts:

1. Maruti Suzuki sells record cars in 2007-08 Maruti Suzuki India Ltd has created a new record by selling 764,942 vehicles in 2007-08, the highest ever in its...
2. Maruti Suzuki taps first time buyers to increase consumer base Effort goes in to reach at top, and same seems to be the motto of Maruti Suzuki’s each and every...
3. Haryana cuts CST on Maruti cars from Nov 01, 2008 In a move that could boost the sales of the country’s largest passenger carmaker, the Haryana cabinet on 21st October’08,...
4. Maruti Suzuki first D-segment car ‘Kizashi’ by 2009 end After establishing successfully in the A-segment and B-segment cars in the country successfully, Maruti Suzuki India limited (MSIL) has upped...
5. Maruti Suzuki first D-segment car ‘Kizashi’ by 2009 end After establishing successfully in the A-segment and B-segment cars in the country successfully, Maruti Suzuki India limited (MSIL) has upped...