Renault to recall around fifteen thousand new cars in emission scare

France: French car maker, Renault, calls around 15,000 diesel-engine SUV’s after a fault was identified in their emissions-reduction system. The recall maybe be limited to the 110-hp diesel version of the Captur subcompact crossover. Company has lost around USD3.6 billion in market value since last Thursday, when fraud investigators had inspected its manufacturing sites to look into its vehicle emissions technology. According to the France environment minister, “Segolene Royal”, Renault was not the only car company in France to break the rules on carbon dioxide and nitrogen emissions, there are few more companies that exceed emissions limits, but she refused to name those companies.

Renault also offered voluntary emissions-system updates for around 700,000 vehicles those are to be eligible for the upgrades, as the automaker seeks to avoid a Volkswagen kind crisis. The engine modifications will be available for vehicles with the latest Euro 6 generation of diesel engines,” a Renault executive said.

TechSci Research believes that due to this recent vehicle recall of Renault Group, the company’s market value & goodwill has witnessed a significant dent in France. The recent report published by TechSci Research, “France Tyre Market Forecast and Opportunities, 2020” France passenger car tyre market is dominated by replacement sales. However, owing to presence of domestic passenger car manufacturing companies such as Citroen, Peugeot, Renault, etc., the OEM demand for passenger car tyres holds a significant share in France passenger car tyre market in 2014. However, there was a downward trend in the production volume of automobile during 2010-2014 in the country which has hampered the France OEM tyre market. Such recalls, like one of Renault, is further slowing the OEM production, consequently contracting the OEM tyre demand in the country.