SAIC-GM to recall 3.3 million vehicles over suspension flaw

US auto giant General Motors and its Chinese partner SAIC will recall 3.3 million vehicles in China over problems with their suspension system, in a fresh blow to GM as it braces for fallout from the China-US trade war.

The automaker says that US president Donald Trump's trade war with Beijing has severely affected its business in the world's second largest economy -- the company's largest market -- and losses could mount as tariffs begin to bite.

Adding to the bad news, GM and Shanghai-based SAIC will recall 3,326,725 vehicles starting from October 20, China's State Administration of Market Regulation said Saturday.

The recall includes Buicks, Chevrolets and Cadillacs made between March 2014 and this September.

China is a crucial market for leading international carmakers, where they must operate as joint ventures with local partners.

A defect in the cars' front suspension could "lead to a loss of control of the vehicle under extreme circumstances", the notice said. The company will repair the vehicles free of charge.

The company has already had a tough year in its most important market: the trade conflict between the US and China has cost it $1 billion, it says, mainly due to rising input costs.

In July China announced tariffs on American agricultural goods and autos in response to trade threats from Washington, with a second round of tit-for-tat tariffs hitting in August for a total of $100 billion of goods from both countries.

Trump has since announced plans to proceed with tariffs on another $200 billion in US imports of Chinese goods.

Last year, GM recalled around 3.5 million vehicles over concerns about air bags and fuel tank issues.

dly/fa

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