Volvo Recalls More Than 200,000 Cars to Fix Fuel Leak Issue

January 23, 2019 Updated: January 23, 2019

STOCKHOLM—Volvo Cars, which is owned by China’s Zhejiang Geely Holding Group, is voluntarily recalling about 200,000 cars after it found an engineering issue that could potentially cause fuel leakage in the engine compartment over time.

The group said its investigation had identified that some vehicles may have small cracks inside one of the fuel lines in the engine compartment, which, along with a pressurized fuel system, may over time lead to fuel leakage.

About 219,000 cars of 11 different models produced in 2015 and 2016 are affected, the Swedish company said, with the highest number of affected cars in Sweden, the UK, and Germany. The Swedish recall was first reported by daily newspaper Aftonbladet.

Volvo V 60 is displayed
Volvo V 60 is displayed at the 88th Geneva International Motor Show in Geneva, Switzerland, on March 6, 2018. (Robert Hradil/Getty Images)

Volvo sold 503,127 cars in 2015 and 534,332 cars in 2016.

“There are no reports alleging injuries or damages related to this issue. Volvo preventatively recalls the cars to avert any possible future problems,” Volvo said in its statement.

The company’s fortunes have been revived since Geely bought it in 2010 and its popular new premium models now compete with larger rivals Daimler and Volkswagen. It sold a record 642,253 cars in 2018.

However, a prolonged U.S.-China trade war has inflated raw materials costs and resulted in a slowdown in Chinese demand for cars. That has forced Volvo to spend to retool its global factories to limit the negative tariff impact and led it to postpone indefinitely its plans to go public.

This month, Geely Auto, the main listed unit of the Geely empire that owns Volvo, forecast flat sales this year, as China’s most successful carmaker struggles with slowing economic growth and more cautious consumers.

A Volvo spokesman declined to comment Jan. 23 about the cost of the latest recall.

The company made its largest recall ever in 2004, when it called back 460,000 cars to fix the wiring in an electronic control module for the cars’ main cooling fan.

By Esha Vaish

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