Kumho displays its tires at an exhibition. [CFP]
Kumho Tire faces further problems after a report revealed that its defective tires are not only produced at its Tianjin plant but other plants as well, and the number of potentially affected vehicles is incalculable.
In addition to Tianjin, the South Korean tire maker has three other plants in China, with two in Nanjing and one in Changchun. The company has a total annual output of 30 million tires and sells to several domestic and global car makers including Beijing-Hyundai, SAIC-General, FAW-Volkswagen, Dongfeng-Peugeot and Great Wall Motor.
On March 15, China Central Television revealed that the company's Tianjin plant had used excessive recycled rubber in the tires, which would cause the tires to rupture. The tire maker conducted an internal probe at Tianjin plant in the aftermath of the media report.
China's quality agency and Kumho haven't yet started the investigation at the factories in Nanjing and Changchun.
As Kumho attempts to resolve its production issues, it's being criticized in China for not acting with sufficient urgency, and its reputation is suffering.
China's business press carried the story above on Monday. China.org.cn has not checked the stories and does not vouch for their accuracy.