Chinese car giant BYD apologises after putting wheels on the wrong way

BYD apologised for an assembly mistake that meant some of its Great Tang electric sport utility vehicles had their front and rear wheel rims installed in reverse.

An investigation traced the problem to a Hubei-based supplier, BYD said in a statement on its official Weibo account. The carmaker has fixed the system responsible for the problem, while the supplier has introduced additional visual inspections on the production line, it said.

BYD said its own testing found that the affected vehicles’ handling wasn’t compromised and there was no safety risk. Owners of affected cars are eligible for replacement and the warranty period will be restarted , it said. The automaker didn’t disclose how many vehicles were involved.

The assembly error came to light after several owners complained online that the wider rear-wheel rims had been installed on their front tires and the narrower front-wheel rims were put on the back. Some said they were concerned about the possibility of excessive wear on their tires, as well as potential safety risks while driving.

BYD’s full-size Great Tang SUV, the flagship of its Dynasty lineup is priced from 239,900 yuan ($52,506) and is vital to the carmaker’s push into higher-priced vehicles. The model has proved popular since its launch in July and in October saw sales reach about 14,000 units, according to the company. It is not yet available in Australia.

While there weren’t any safety incidents, the manufacturing slip-up touches on a sensitive topic for China’s auto market. The industry faces growing regulatory scrutiny over quality and durability, including stricter standards on door handles, advanced driver-assistance technology and batteries.

It comes as China’s electric-vehicle makers push into overseas markets to escape a domestic price war, but are grappling with a strengthening yuan.

Geely swung to a net foreign-exchange loss in the first nine months of the year from a gain a year earlier, limiting net profit growth to 6.7 per cent from 41 per cent at the core level. BYD, China’s biggest carmaker, took a 1.14 billion yuan ($171 million) hit to cash from exchange-rate movements.

The onshore yuan has strengthened 4.6 per cent against the dollar this year, making it Asia’s second-best performer.

The currency drag comes as overseas sales become a key growth driver for Chinese carmakers facing weaker domestic demand. Roughly 40 per cent of both EV giants’ third-quarter deliveries went overseas, leaving their bottom lines more exposed to currency swings.

Bloomberg

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