XPeng Inc. (NYSE:XPEV) is facing severe backlash for its handling of steering system failures in its P7+ electric vehicles. The Chinese EV manufacturer has been accused of replacing faulty parts without issuing an official recall.
Secret Fixes To P7+ Steering, Failures In New Vehicles
Economic Information Daily, a publication under China’s Xinhua news agency, reported that XPeng is being criticized for quietly replacing defective parts in its P7+ electric vehicles without initiating an official recall, Car News China revealed. The concern centers on the power steering system in these vehicles, which owners allege may suddenly malfunction or lock up while driving.
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XPeng allegedly denies a systemic defect despite complaints, secretly applies sealant during maintenance, and selectively replaces steering systems for vocal complainants instead of issuing a recall.
One vehicle owner, Ms. Gan, expressed her concerns, stating, “Xpeng is gambling with our lives.” The issue has led to unexpected steering wheel movements, creating potentially hazardous driving conditions.
Failures have occurred even in vehicles with newly replaced steering systems, casting doubt on XPeng's repair approach. On being asked by the publication, Xpeng customer manager Lei Changliang cited regulators' role in recall decisions.
XPeng's Recall Strategy Sparks Trust and Legal Concerns
XPeng’s approach may be seen as an attempt to bypass China’s recall regulations by gradually replacing defective parts on a case-by-case basis rather than issuing a comprehensive recall. This controversy arises at a time when China’s authorities have announced plans to strengthen oversight of over-the-air updates in smart vehicles.
The EV maker’s handling of the steering system failures and the subsequent allegations could have significant implications for the company’s reputation and financial standing. The company has been experiencing rapid growth, with its fiscal second-quarter sales increasing by 125.3% year-on-year to 18.27 billion Chinese yuan ($2.55 billion).
Notably, Xpeng had recently expanded its partnership with Volkswagen to accelerate software-defined vehicle strategy, enabling faster software iterations, over-the-air updates, and shorter development cycles.
However, the alleged secret replacement of defective parts could tarnish the company’s reputation and potentially lead to regulatory scrutiny. It is worth noting that other automakers, such as Ford Motor Co., have issued recalls for similar issues, reinforcing the importance of addressing such defects openly and promptly.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
