Mercedes-Benz sports utility vehicles built in Tuscaloosa, Alabama, are being checked for potential problems by Shanghai customs authorities, Daimler confirmed on Thursday, as a trade dispute between the United States and China heats up.
Mercedes-Benz GLE and GLS models, built in the United States between May 4 and June 12, 2018, have a brake issue which poses a "safety risk," according to a Chinese customs document circulating on Chinese social media.
The document said authorities in Shanghai had found the rear brakes on these vehicles to be "insufficient." The authenticity of the documents could not be verified with Chinese authorities.
Daimler said the company had been made aware of a potential brake issue related to vehicles in China imported from the United States.
"We are working with the relevant authorities to resolve the issue," a spokeswoman said on Thursday. Daimler could not immediately comment on the number of vehicles affected, and is seeking to resolve what it described as an "entirely technical issue."
On Wednesday, Chinese authorities said they would impose additional tariffs of 25 percent on $16 billion worth of U.S. imports from steel products to autos, in an escalation of the trade dispute between China and the United States.
In June, Daimler cut its 2018 profit forecast because of the trade war between China and the United States, sparking fears of a wave of earnings downgrades in the auto industry.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES

'Bengaluru, absolute traffic hell...: City's congestion worsens as HSR Layout flyover shuts for metro work, netizens irked

Gratuity Calculation: What will be your gratuity on Rs 40,000 last-drawn basic salary and 5.2 years of service?

SBI 3-year FD vs SBI 5-year FD: Know which fixed deposit scheme can give you higher returns on Rs 2 lakh, Rs 4 lakh, Rs 6 lakh investments

8th Pay Commission: Can basic pension cross Rs 3 lakh mark in new pay commission? See calculations to know its possibility?

SBI 444-day FD vs Central Bank of India 444-day FD: Which can provide higher maturity on Rs 5,00,000, Rs 7,00,000 & Rs 10,00,000 deposits?

UPS vs NPS vs OPS: Last drawn basic pay Rs 100,000; pensionable service of 30 years; what can be your monthly pension in each?

Monthly Pension Calculations: Is your basic pension Rs 25,000, Rs 35,000, or Rs 50,000? Know what can be your total pension as per latest DR rates
10:16 PM IST