Chinese Auto Parts Maker Tuopu Group Responds to Tesla Recall

Regarding a Tesla recall announcement last week, Chinese auto parts supplier Ningbo Tuopu Group on Monday issued a statement at the Shanghai Stock Exchange, confirming that the steering knuckles of Tesla Model Ys involved in the recall were directly supplied by Tuopu Group, and that the probability of defects was about 0.2%-1.0%. Tuopu Group believes that this recall isn’t a major event and therefore will not affect the firm’s annual operating performance.

Last Friday, Tesla and and its Shanghai division submitted a recall report and filed a plan for some Model Ys to the U.S. National Highway Traffic Safety Administration and China’s State Administration for Market Regulation, respectively.

According to the recall report, Tesla had applied to U.S. traffic authorities on November 21, 2021 to recall 826 Model Ys produced between June 16, 2020 and November 10, 2021 in the U.S.

Besides, the recall plan disclosed by China’s State Administration for Market Regulation on December 3 shows that Tesla (Shanghai) plans to recall some Model Ys produced in China from February 4, 2021 to October 30, 2021, totaling about 21,600 vehicles, exceeding the number recalled in the U.S.

The document shows that due to various manufacturing reasons, the strength of front and rear steering knuckles on some recalled vehicles may not meet design requirements. The component may have been deformed or broken during operation, which could cause the suspension connecting rod to come out of the steering knuckle under extreme stress. This can affect a driver’s ability to control the vehicle while driving, thus increasing the risk of dangerous collisions.

Tuopu Group said in the announcement that the steering knuckle of the Model Ys involved in the recall is directly supplied to customers by the company. As for the underlying reasons, the company pointed out that due to insufficient water level in the quenching tank of a heat treatment production line, some products were not completely immersed in the liquid, meaning that the final strength of the steering knuckle may not meet design requirements. According to the company’s test results, the probability of defects in this batch of suspected products is about 0.2%-1%.

At present, the recalled products are only matched with Model Y models, and do not involve other Tesla models or other customers’ models. As a response, Tuopu Group said that it has completed the rectification and improvement of the heat treatment production line to ensure that the products are fully quenched, and at the same time, the hardness of the products is tested by 200%. At the same time, the company has provided 132 testing instruments for identifying risky parts to Tesla’s service centers for testing and replacing problematic products.

SEE ALSO: Tesla Recalls 21,599 Model Ys in China Due to Potential Risks in Suspension Rod

Affected by the recall, Tuopu Group’s stock price has plummeted by 8.86% as of the close of December 5. Regarding the impact of this ongoing recall, Tuopu Group said that the cost cannot yet be determined. According to the estimation of recall quantity and defect ratio, the company believes that this recall isn’t a major event, and will not affect the firm’s annual operating performance or overall business.

Topp Group, as a supplier of automobile core components, mainly focuses on the R&D and manufacturing of automobile power chassis system, trim system and intelligent driving control system. Its main customers have included GM, Ford, Daimler AG, BMW, Volkswagen, Audi and Honda. It also cooperates with new Chinese carmakers such as NIO, Xpeng Motors and Li Auto.