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Home > China Business News > China Industry news > No price break after New Alto sedan recall

No price break after New Alto sedan recall

http://www.toocle.com/ 2010-02-09 08:32:53 Global Times

  Though other subcompacts are going on sale ahead of the Spring Festival, Chang'an Suzuki's New Alto will see its prices stay unchanged, ranging between 44,900-58,900 yuan ($6,576-$8,627), even after Friday's recall.

  Chongqing Chang'an Suzuki Automobile, Japanese automaker Suzuki's joint venture in China, announced Friday in a statement that it would recall 10,326 New Alto sedans produced between July 6, 2009 and January 17, 2010 due to gas filter problems.

  Oil leaks may occur due to a problem with the soldering of fuel filter brackets, said the statement, adding Suzuki would fix the problem free of charge.

  The recall will be positive for the New Alto's sales because the manufacturer issued it without receiving any complaints, said sales rep Guo Haibao, who works for a Beijing-based dealership that sells the New Alto.

  Guo said potential buyers must pay a 5,000 yuan ($723) down payment and wait two months to receive the car.

  Other subcompact dealerships including BYD F0, Chang'an Ben Ben, Chery QQ3 and Riich M1 are all providing discounts or offering zero purchase tax and insurance deals to boost sales before the Spring Festival.

  Gao Guozhang, a Beijing-based sales manager for Chang'an Ben Ben, told the Global Times that more than 10 of the company's models are being sold with price reductions of up to 3,000 yuan ($439).

  First launched in 1979, more than 10 million Altos have been sold around the world.

  Chang'an Suzuki has localized Altos since 1993, and launched the New Alto in China last September.

  After reporting 30 percent year-on-year unit sales growth last year, the company saw record monthly high sales in January.

  That month, it sold more than 200,000 vehicles, up more than 100 percent year-on-year thanks to purchase tax credits for small vehicles.

  Suzuki recalled 9,244 New Alto sedans in Germany in late December due to a loose connection between the fuel pipe and fuel tank.

  It also issued a recall on more than 1,000 cars sold in Austria because of leaky fuel pumps.

  By Chen Xiaomin

  Source: Global Times