(Yicai Global) Nov. 2 -- Chinese electric vehicle maker Li Auto will replace defective parts on its Li One sport utility vehicle produced on and before June 1 for free to avert post-collision suspension risks, the company announced three months after its Nasdaq debut.
Up to 97 such front suspension collision incidents had occurred as of Oct. 31, the Beijing-based carmaker said in a press release yesterday. Ball pins in front suspension lower control arms popped out of ball joints in 10 accidents, with hard knocks on the wheels on one side in these impacts causing this result in all these cases. The Li One has a higher probability of having its ball pins eject than other SUV models, the company said.
Li Ones delivered from Nov. 1 are also equipped with upgraded rear chassis plates, said the company, which will provide a free upgrade to these plates on models delivered on or before Oct. 31.
The two optimizations and upgrades will wrap up in the next three months, Li Auto forecasts.
The carmaker omitted details of these replacement costs and a prediction of their likely effect on its annual bottom line.
Formed in April 2015, Li Auto has CNY915 million (USD136.83 million) in registered capital. It focuses on EV research, development and production.
The firm listed on Nasdaq on July 30. Its share [NASDAQ:LI] price is now over 75 percent higher than its offering price just three months later. Its stock closed down 2.18 percent at USD20.17 on Oct. 30.
Li Auto's car deliveries climbed 29.3 percent from August at 3,504 units in September in the third straight monthly rise, public data show. It shipped 18,160 vehicles in the first nine months.
Editor: Ben Armour