e-magazine
The Hot Zone
China's newly announced air defense identification zone over the East China Sea aims to shore up national security
Current Issue
· Table of Contents
· Editor's Desk
· Previous Issues
· Subscribe to Mag
Subscribe Now >>
Expert's View
World
Nation
Business
Finance
Market Watch
Legal-Ease
North American Report
Forum
Government Documents
Expat's Eye
Health
Science/Technology
Lifestyle
Books
Movies
Backgrounders
Special
Photo Gallery
Blogs
Reader's Service
Learning with
'Beijing Review'
E-mail us
RSS Feeds
PDF Edition
Web-magazine
Reader's Letters
Make Beijing Review your homepage
Hot Links

cheap eyeglasses
Market Avenue
eBeijing

Top Story
Top Story
UPDATED: April 11, 2011 NO. 15 APRIL 14, 2011
If It's Broken, Fix It
China has been slow to adopt auto recall procedures similar to those in the West, but new regulations are in the works
By LAN XINZHEN
Share

 

GOING TO THE DEALERS: Toyota Prius hybrid electric vehicles are waiting to be sold in Aichi Prefecture, Japan, in March 2010 (XINHUA/AFP) 

"In recent years consumers have become more comfortable with the idea of a car recall. Some consumers even make inquiries themselves if they think something is wrong with their car," Jia said. "But even if consumers find problems in their cars that would necessitate a recall, automakers will choose to ignore and evade them."

The problem is this: It is hard for the AQSIQ to find safety defects in various car models and launch recalling orders to the automakers, allowing automakers to slip without suffering repercussions. Some companies do take an altruistic approach and issue voluntary recalls to protect their consumers and brand reputation—but most don't.

New regulations

China's absence from Toyota's recent global recall has put auto recalls under the microscope.

Liu Pingjun, Vice Minister of the AQSIQ, said the government is actively improving related laws and regulations and trying to promulgate the Regulations on Supervision and Administration of Recall of Auto Products this year.

A draft of these regulations, based on the Provisions on the Administration of Recall of Defective Auto Products in 2004, was published for public opinion in July 2010. According to the draft, both imported and domestically produced cars are incorporated into the regulations.

Compared with the previous provisions, the new regulations strengthened punishment against automakers that neglect to issue recalls. Fines will be raised to 2-50 percent of the value of recalled cars, instead of the maximum fine of 30,000 yuan ($4,580).

Jia said in the past there were many deficiencies in the provisions related to car recall and the punishment was too low. The new regulations are making progress by increasing punishments.

Zhong Shi, an independent analyst of automobile industry, said the old recall provisions were not severe and the supervision was far behind that in foreign countries. But the new regulations draw on international practices and should have been issued long ago.

However, this does not mean automakers that fail to implement recalls will be held legal responsibilities. Unless significant accidents occur or consumer complaints increase, the government will only strengthen punishments against automakers, not directly reprimand them, said Zhong.

Car Recalls in China and the United States In 2010

China sold 18.06 million cars, issued 123 recalls and recalled 1.17 million vehicles. The number of recalled cars accounted for 6.5 percent of the total sales volume.

The United States sold 11.59 million cars, issued 648 car recalls and recalled 20.28 million vehicles. The number of recalled cars accounted for 175 percent of the total sales volume.

 

   Previous   1   2  



 
Top Story
-Protecting Ocean Rights
-Partners in Defense
-Fighting HIV+'s Stigma
-HIV: Privacy VS. Protection
-Setting the Tone
Related Stories
-Driving in Reverse
-Tire Maker's Test
-Spreading the Traffic Jam
 
Most Popular
 
About BEIJINGREVIEW | About beijingreview.com | Rss Feeds | Contact us | Advertising | Subscribe & Service | Make Beijing Review your homepage
Copyright Beijing Review All right reserved