Chery Widens Asbestos Recall

Chery Automobile Co. says it will expand a recall of cars with exhaust and engine gaskets that contain asbestos by 18,900 cars in five additional countries across Asia and South America where the carcinogen is banned.

The asbestos problem came to light in mid-August when Chery and Great Wall Motor Co. China's two largest domestic vehicle exporters were forced to recall a combined 23,000 cars in Australia.

Chery's widened campaign includes Chery Tiggo SUVs and Cielo compact cars (known as A3 in some markets) in Argentina, Brazil, Chile, Singapore and Uruguay.

The company blames the problem on an unidentified supplier that provided the parts. Chery has not disclosed whether it will recall similar models in China, where asbestos is not banned, or in any of other export markets.

Great Wall tells Bloomberg News it will launch campaigns in any of its overseas markets where the material is illegal. Both carmakers say they now use asbestos-free parts in all vehicles made for China and export markets.