Tuesday, August 14, 2012

Ford India to Recall Cars


NEW DELHI--Ford Motor Co.'s F +0.53% Indian unit is in the process of recalling some Figo hatchback and Classic sedan models because of potentially faulty parts which could result in breakdowns or even fires.

The company said it is inspecting both gasoline and diesel variants of the Classic manufactured between January 2008 and December 2010 and those of the Figo made from March 2010 to December 2010 for a possible crack in the rear twist beam.


The crack can cause an abnormal noise which can lead to diminished performance, and even render the vehicle inoperable, the company said in an emailed statement Monday.


It is also recalling gasoline variants of the Figo and the Classic made between September 2010 and February 2011 because of oil leaks from the power-steering hose.


It is possible for the fluid used in the power-steering system "to come into contact with the vehicle's exhaust components, creating potential for smoke and, in extreme cases, fire," the company said.


Ford didn't say how many vehicles it is recalling or what will be the cost.


Ford launched the Figo, its first small car in India, in March 2010. The model has helped Ford revive sales in the country as it allowed the company to offer a product at price points which are preferred by a majority in India where nearly two-thirds of all cars sold are small hatchbacks.


The auto maker was banking heavily on local suppliers for the Figo to keep its costs low. The company buys nearly 85% of the Figo's parts from local suppliers.


Ford now joins Maruti Suzuki India Ltd., 532500.BY -1.20% Toyota Motor Corp., 7203.TO -0.63% Honda Motor Co., 7267.TO +0.12% Suzuki Motor Corp. 7269.TO +0.13% and Tata Motors Ltd. TTM -1.09% in recalling cars in India to replace faulty parts.


Suzuki Motor Corp.'s lo
cal unit, Maruti Suzuki, in April last year recalled 13,157 units of diesel cars to inspect a defective part. That followed a similar move in February 2010 when it recalled more than 100,000 units of small car A-Star to replace a defective part in the fuel tank.


Toyota Kirloskar Motor Pvt. Ltd. recalled 40,000 units of its Etios sedan and Liva hatchback cars in December for possible cracks in their hose pipes and fuel pipes.


Honda Siel Cars India Ltd. has had three recalls in India in the recent past, the latest being in September 2011 to replace power-window switches on 72,115 of its City sedans.


Tata Motors, India's biggest auto maker by revenue, offered additional safety equipment on its Nano minicar in November last year after some incidents of the car catching fire.


Besides the Figo and the Classic, Ford also makes the Fiesta sedan and the Endeavour sport-utility vehicle at a factory in the southern city of Chennai.


Ford is investing $1 billion to build a new factory at Sanand in the western Gujarat state that will be operational by 2014.

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