Fines for vehicle recall set to climb
By Zha Minjie |
October 9, 2012, Tuesday
|
Print Edition
Print Edition
CHINA'S national quality watchdog will increase penalties for automakers whose vehicles are recalled in the country due to problems with quality standards.
Hefty fines for lagging quality standards will be imposed, the National Quality Inspection Administration Bureau warned. For example the fine for tire defects will be raised from the current maximum of 30,000 yuan (US$4,768) to 2 to 10 percent of the vehicle value, it said. Automakers which do not cooperate with the investigation can be fined up to 1 million yuan,
"In the past the punishments for defective vehicles were relatively low," said Xiao Lingyun, director with the automobile recall management at the State Defective Products Administration Center of the inspection bureau, at a road safety seminar at Shanghai Tongji University yesterday. The watchdog body is seeking public opinion for a new automobile recall regulation.
Xiao said that automakers, which fail to stop producing or selling the defective vehicles after the recall order or ignore the recall, can be fined hundreds of millions of yuan after the regulation is enforced.
Hefty fines for lagging quality standards will be imposed, the National Quality Inspection Administration Bureau warned. For example the fine for tire defects will be raised from the current maximum of 30,000 yuan (US$4,768) to 2 to 10 percent of the vehicle value, it said. Automakers which do not cooperate with the investigation can be fined up to 1 million yuan,
"In the past the punishments for defective vehicles were relatively low," said Xiao Lingyun, director with the automobile recall management at the State Defective Products Administration Center of the inspection bureau, at a road safety seminar at Shanghai Tongji University yesterday. The watchdog body is seeking public opinion for a new automobile recall regulation.
Xiao said that automakers, which fail to stop producing or selling the defective vehicles after the recall order or ignore the recall, can be fined hundreds of millions of yuan after the regulation is enforced.
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