BMW recalls 1.6 million cars citing potential problems with airbag

BMW will recall 1.6 million cars around the world due to a potential airbag problem. The recall affects the BMW 3 Series model built between May 1999 and August 2006, BMW said in a statement, adding that it was a "precautionary voluntary measure to minimise the risk of the passenger airbag not opening properly".

The 1.6 million cars affected include 240,000 cars being recalled due to problems with an airbag made by a third-party supplier and the cars do not need an additional change of airbag.

In addition, BMW also announced it will increase the number of models it builds in China from three to six in the coming years to meet growing demand.

BMW currently produces three models in China - the 3 Series, 5 Series and the X1 - and the new models would include a completely new entry model below the 3 Series as well as a variant of the X3 specifically developed for and produced in China.

BMW also plans to extend its joint venture with Chinese automaker Brilliance China Automotive until 2028. According to a forecast by management consultant McKinsey, the Chinese market for private cars should grow by an annual average of eight percent until 2020 when overall sales would reach 22 million vehicles.