PSA recalls 9,285 cars in China on brake issue

A worker adds a Citroen badge at a plant operated by Dongfeng Peugeot-Citroen Automobile in Wuhan, China.

Photo credit: Bloomberg
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SHANGHAI (Reuters) -- Dongfeng Peugeot-Citroen Automobile, a joint venture between PSA/Peugeot-Citroen and China's Dongfeng Motor Group, will recall 9,285 cars due to contaminated brake fluid, China's quality watchdog said today.

The venture, based in Wuhan, central China, will recall Citroen- and Peugeot-brand cars produced between Aug. 12 and Sept. 13, 2013, because the contaminated fluid in those vehicles poses potential risks, China's General Administration of Quality Supervision, Inspection and Quarantine said in a statement on its Web site.

A spokesman for Dongfeng Peugeot said the contamination occurred during the production stage. PSA and Dongfeng operate three assembly plants in Wuhan.

A company spokesman said recently that the joint venture sold 550,000 units in 2013 and hopes to sell 650,000 units in 2014.

PSA has reached an outline deal with Dongfeng to raise up to 4 billion euros ($5.47 billion) in fresh capital and deepen cooperation with the Chinese carmaker, sources familiar with the matter told Reuters on Thursday.

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