China Bans Some Mercedes Van Imports, Cites Defects

SHANGHAI, May 24 Reuters reported that China has slapped an emergency ban on imports of a Mercedes-Benz van citing brake problems, and warned users to stop driving the vehicles, DaimlerChrysler executives and government officials said on Friday.

The State Department of Quality Supervision and Quarantine said in a statement it had issued a nationwide warning on Benz's South Korean-made MB100 vans, under rules for consumer protection.

The MB100s -- made for DaimlerChrysler by South Korea's Ssangyong Motor contained a defect that may create difficulty in braking, the safety agency said.

"After a national investigation and in accordance with expert analysis, our initial findings are that the van models contain hidden defects," said the statement seen by Reuters on Friday.

"To assure people's safety...users of the MB100 series of light passenger vehicles should subject their vehicles to immediate inspection," the safety agency's statement said.

Imports of the van were banned as of May 23, it added.

DaimlerChrysler, the world's number five automaker, denied its vans were faulty and played down the government's alert, saying it was in discussions with relevant authorities and that all parties were working on a solution.

"We have registered with the authorities that in our view, according to our comprehensive, detailed, technical findings, in no way does this vehicle have a design defect," a spokeswoman for the U.S.-German giant in Beijing told Reuters.

"We are having ongoing discussions with the authorities. Right now we don't have any more information because of that."

HIDDEN PROBLEMS

Problems with the vans first surfaced in China's undeveloped Gansu province earlier this year, the agency's statement said.

It said the exhaust pipe, braking oil pipe and axle shaft in six Mercedes MB100 minibus models rubbed against each other when the vehicle was in motion, impeding the flow of braking oil to the rear wheels.

The problem, and the ban, applied to two other MB100 models sold under Ssangyong's brand name, it added. Daimler owns 1.2 percent of the South Korean automaker.

"Mercedes-Benz China Ltd and Ssangyong Motor Co should abide by our regulations and adopt measures as soon as possible to eliminate safety concerns," the agency's statement added.

The DaimlerChrysler spokeswoman said the ban might have arisen from a misunderstanding.

"It's usual at some times there are discrepancies in understanding. This industry is just developing here," she said.

"Our findings indicate there is no design defect and there's some very special conditions here in China," she added without elaborating. DaimlerChrysler may release a statement later on Friday, she said.

Industry experts say automakers often have to adjust vehicles for China's roads, which tend to subject cars and buses to more abuse than in other countries.

The official Xinhua news agency quoted "unofficial statistics" late on Thursday that 2,076 MB100s have undergone repairs around China since 2000, 11.37 percent of them with the same defect.

More than 5,000 MB100s of various models have been sold on the mainland since imports from South Korea began in 1998, Xinhua reported. (Additional reporting by Harry Zhang)