China On A Roll Recalling Foreign Cars, Government Says It's Targeting Honda (HMC), BMW, Volkswagen (VOW3) To Protect Consumers

It’s been a busy August for China’s product quality watchdog, and at least four major foreign automakers have faced the costly prospect of recalling vehicles in the past three weeks.

Honda Motor Co. Ltd. (TYO:7267) became No. 4 when China’s General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) said Friday the Japanese auto company’s popular CR-V crossover has “piston rod” problems. More than 400,000 vehicles are covered by the recall notice.

The pace of recalls may be picking up this year after Beijing implemented standards it says will boost product safety, but some argue is part of a larger agenda to spur consumption of domestic brands in a market where Chinese buyers flock to foreign vehicles if they can afford them. Earlier this year China banned members of the military from putting official plates on foreign cars. It also reportedly began investigating alleged price gouging by foreign automakers, whose products can cost three times more in China than elsewhere.

Honda does business in China as Dongfeng Honda Automobile Co, a 50-50 joint venture with Dongfeng Motor Group Co. Honda confirmed the recall on its Chinese website.