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China Automotive Systems

Controversies

Controversies tied to this brand in public sources. A listing is not a finding of fault.

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  1. 2016

    China Automotive Systems Recalls 150,000 EPS Steering Units, Previously Faced US Securities Class Action

    China Automotive Systems, Inc. (NASDAQ: CAAS) disclosed in its FY2016 report a recall involving 152,811 electric power steering (EPS) products due to torque sensor wear and possible ECU failure, with an accrued charge of about US$5 million. Previously, in 2011, the company faced a US securities class action alleging misleading statements, settled in 2014 without admitting liability; in 2019 a Delaware shareholder derivative suit alleged excessive executive compensation and misleading director compensation disclosures, settled in 2020 with payment of US$55,998 to the company and governance improvements. Status: recall. Subject: China Automotive Systems, Inc. Scope: CAAS EPS steering products and corporate governance.

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