Toyota recalls Lexus IS cars in China under tougher rules
Source: Bloomberg News |
January 31, 2013, Thursday
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Print Edition
Print Edition
TOYOTA Motor Corp is recalling 22,869 Lexus cars in China because of defects with windshield wipers, the biggest callback since a new law broadening manufacturer liability came into force this year.
The company is recalling the imported Lexus IS cars, which were made from January 2006 to September 2011, according to a statement on the website of China's General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ).
Toyota also said yesterday that it is recalling almost 1.3 million vehicles worldwide because of defects associated with airbags and window wipers.
China is stepping up protection for consumers as automakers from General Motors Co to Volkswagen AG seek to expand sales in the world's largest auto market. The new law allows the government to order investigations and impose fines should manufacturers and importers fail to recall faulty vehicles in a timely manner. A separate rule mandating minimum standards for auto warranties comes into effect from October.
"Definitely, it will increase costs," said Paolo Beconcini, managing partner at Carroll, Burdick & McDonough LLP in Beijing, whose firm advises European and US automakers in China on product liability, safety and intellectual property issues. "Car manufacturers will have to invest more resources internally to have people working on investigation, supporting the work of AQSIQ."
Last year, a total of 113 cases of vehicle recalls were administered in China, with 3.2 million defective vehicles being recalled, a 75 percent increase from the year before.
The company is recalling the imported Lexus IS cars, which were made from January 2006 to September 2011, according to a statement on the website of China's General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ).
Toyota also said yesterday that it is recalling almost 1.3 million vehicles worldwide because of defects associated with airbags and window wipers.
China is stepping up protection for consumers as automakers from General Motors Co to Volkswagen AG seek to expand sales in the world's largest auto market. The new law allows the government to order investigations and impose fines should manufacturers and importers fail to recall faulty vehicles in a timely manner. A separate rule mandating minimum standards for auto warranties comes into effect from October.
"Definitely, it will increase costs," said Paolo Beconcini, managing partner at Carroll, Burdick & McDonough LLP in Beijing, whose firm advises European and US automakers in China on product liability, safety and intellectual property issues. "Car manufacturers will have to invest more resources internally to have people working on investigation, supporting the work of AQSIQ."
Last year, a total of 113 cases of vehicle recalls were administered in China, with 3.2 million defective vehicles being recalled, a 75 percent increase from the year before.
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