Money-losing Qoros hit by its first big recall

Gasgoo.com (Shanghai July 30) -Qoros Auto released the first recall of 6,736 units of Qoros 3 passenger car of 2014 and 2015 model in July in China, because of a default in of seat belt in the front seat.

The recall will cover 2014-2015 model years Qoros 3 1.6T, five-door Qoros 3 1.6T and Qoros 3 city SUV, built in November 12, 2013 to July 3, 2015.

The specific reason for the recall is the weakness of the front-seat belt in lap, which will result in bad flexibility and low security. But this flaw will not put passengers or drivers under life risks, according to the statement of a professor close to the matter.

The dealers will replace the flaw seat belt for free for these recalled vehicles. There hasn’t reported any injury related to the matter, and the active recall is to raise awareness of consumers.

Qoros Auto, established in 2007, is jointly (50%-50%) owned by Kenon Holdings and China's Chery Automobile Company. The Qoros 3 is the first automobile built by the manufacturer.

The specific reason for the recall is the weakness of the seat belt, which will result in bad flexibility and low security but will not put passengers or drivers under life risks, according to the statement of a professor close to the matter.

Qoros Auto is reported deficit of around $175 million in 2014, with an accumulative deficit of $450 million from 2010 to 2014, according to the 2014 fiscal report of its owner Kenon Holdings.

As its owner Kenon Holdings has finished investing in Qoros Auto, the company faced with a challenging situation in further development.

The joint-venture sold 6,967 units in 2014, forcing the company to take action to improve the terrible situation. Thus, the automaker launched third new model of Qoros 3 City SUV, however with the downturn vehicle market. As a further reaction, the company has altered its high-level managers, including president and CEO, marketing and sales manager.

However, it is said the Kenon Holdings from Israel might give up Qoros. Thus, this recall is a big blow for the joint-venture if it can’t rebuild its brand image in the second half of the year.