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Giant says product recall will not impact sales in U.S.

2012/01/19 16:14

Taipei, Jan. 19 (CNA) Giant Manufacturing Co., one of Taiwan's leading bicycle makers, said Thursday a recall of 900 units of two models in the U.S. market is unlikely to affect its sales there.

Since the recalled bicycles account for just a fractional amount of Giant's global sales, Giant said the recall is unlikely to impose any material impact on the company's operations.

On the website of the U.S. Consumer Product Safety Commission (CPSC), the commission said a day earlier that the Taiwanese company has instituted a voluntary recall of about 900 units of 2012 Defy Advanced and Avail Advanced models.

The recall came after Giant detected certain flaws in the forks of the models that could cause cracks and pose a fall hazard to riders.

The CPSC has urged consumers to stop using the recalled models.

However, so far no incidents or injuries caused by the flaws have been reported, according to the CPSC.

The two models were sold in the U.S. market for a price range between US$3,000 (NT$90,000) and US$4,550 during the period from August to November 2011, the commission said.

According to Giant, the recalled models belong to the company's middle-to-high price range in the U.S. market, where the average selling price stands at about US$1,600.

However, Giant said since the company's annual sales volume in the U.S. reaches about 300,000 units, the recall is unlikely to affect its sales in the particular market.

Moreover, compared with its global sales of 6 million units, the recall will not impact the company's overall operations at all.

(By Chao Wei-lan and Frances Huang) enditem/npw