17 Mar '11, 1pm

S.Korean tyre maker probed over quality standards

S.Korean tyre maker probed over quality standards

HONG KONG: South Korea's Kumho Tire, the biggest tyre supplier to carmakers in China , is conducting an internal investigation following a report that its tyres failed to meet quality standards. According to a Chinese state television report, Kumho used more material from unfinished tyres than allowed, to save on costs. The report has sparked anxiety among some large automakers because Kumho counts the likes of General Motor and Peugeot Citroen as clients. According to the report, the tyre maker used excessive amounts of recycled tyres as raw materials in its manufacturing facility in Tianjin. That could cause the tyres to rupture. China's Ministry of Industry and Information Technology is said to be conducting its own probe into the matter. A Kumho spokesperson has come out to say that the company would cooperate with investigators . The spokesperson defended the company'...

Full article: http://www.channelnewsasia.com/stories/corporatenews/view...

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