China bans certain Renault models

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According to Bloomberg:

June 10 (Bloomberg) — China, the world’s biggest auto market, banned imports of some models of Renault SA vehicles, saying they don’t meet national safety standards. The French company said the vehicles in question were damaged in transit.

Cars exported to China by the French company pose “serious potential safety risks,” the General Administration of Quality Supervision, Inspection and Quarantine said today. It said Renault should examine its quality-control measures and take steps to ensure the safety of its products.

The Laguna, Scenic and Megane models are affected by the ban, which came into the effect on June 4, the statement said. Renault spokeswoman Gita Roux said China’s concerns arose from problems with the transport and storage of a limited number of cars and that there are no issues connected to manufacturing.

“This could be something idiotic like storing the cars with fuel in the tank,” said Peter Schmidt, managing director at Warwick, England-based consulting firm Automotive Industry Data. “Any European car must meet existing Chinese safety legislation. If they didn’t then the vast majority of Chinese domestically made cars would also fail the test.”

The faults concern 160 older-generation vehicles that were built in 2007 and presumably stored since then, Roux said.

“We’re sending a team of experts to look into it and to make sure we establish the proper processes,” she said by telephone. “Our concern is to ensure that we comply fully with requirements of the Chinese authorities.”

Sales Boom

China’s passenger-vehicle sales rose 47 percent to 829,100 in May, the biggest jump since February 2006, as tax cuts and government subsidies helped extend the country’s lead over the U.S. as the No. 1 auto market this year. Overall vehicle sales rose 34 percent to 1.12 million, the China Association of Automobile Manufacturers said yesterday.

Renault’s Megane and Clio models were subject to a warning by Chinese authorities regarding potential risks in March last year after the company failed to report a fault that was filed in other countries, according to the quality-control agency’s Web site. That warning was removed in August after Renault took appropriate measures, it says.

The Renault Clio never made it to the PRC though.