Vehicle makers told to lift game
By Elaine Kurtenbach |
March 16, 2010, Tuesday
|
Print Edition
Print Edition
CHINA is urging its auto makers to upgrade quality and set up accountable recall systems to handle defects, amid growing awareness of such issues following Toyota's recent recalls.
Chinese vehicle sales surged 45 percent last year, to more than 13 million units, making China the world's biggest auto market.
Sales growth this year remains in the double digits, prompting local auto makers to announce major expansion plans.
As they rush to meet surging demand, car makers need to guard against "blind expansion," the Ministry of Information and Technology said in a statement issued on the eve of yesterday's World Consumer Rights Day.
"China has become a world automobile producing and consuming power, but it should also be noted that the industry still lacks core technology and has weak innovative capabilities," the ministry said.
"This creates hidden dangers for public safety."
China has an auto recall system, put in place in 2004, but such recalls generally are conducted at the request of the General Administration of Quality Supervision, Inspection and Quarantine, also known as AQSIQ.
Auto makers who refuse to comply face a modest maximum fine of 30,000 yuan (US$4,400). There is no compulsory compensation for car buyers.
Critics of the system are urging the government to enact a law to ensure better enforcement of recalls.
The Ministry of Information and Technology urged auto makers to "put quality first" and ensure control over supply chains - a factor cited as one reason for the quality problems that led Toyota Motor Corp to recall more than 8 million vehicles worldwide due to troubles with acceleration, braking and floor mats that could cause gas pedals to stick.
In China, Toyota has recalled 75,522 RAV4s.
Of the 212 recalls, involving 3.21 million vehicles, initiated in China in the past five years, only seven were by Chinese auto makers, according to media reports, citing the AQSIQ.
But the lower rate of recalls is widely thought to reflect the weak system for catching and reporting defects.
China's market is dominated by foreign brand vehicles, generally produced in joint ventures with local partners.
As homegrown manufacturers are beginning to take a larger share of sales - they took about half of the total in February - they are facing closer scrutiny on quality, services and value.
Chinese vehicle sales surged 45 percent last year, to more than 13 million units, making China the world's biggest auto market.
Sales growth this year remains in the double digits, prompting local auto makers to announce major expansion plans.
As they rush to meet surging demand, car makers need to guard against "blind expansion," the Ministry of Information and Technology said in a statement issued on the eve of yesterday's World Consumer Rights Day.
"China has become a world automobile producing and consuming power, but it should also be noted that the industry still lacks core technology and has weak innovative capabilities," the ministry said.
"This creates hidden dangers for public safety."
China has an auto recall system, put in place in 2004, but such recalls generally are conducted at the request of the General Administration of Quality Supervision, Inspection and Quarantine, also known as AQSIQ.
Auto makers who refuse to comply face a modest maximum fine of 30,000 yuan (US$4,400). There is no compulsory compensation for car buyers.
Critics of the system are urging the government to enact a law to ensure better enforcement of recalls.
The Ministry of Information and Technology urged auto makers to "put quality first" and ensure control over supply chains - a factor cited as one reason for the quality problems that led Toyota Motor Corp to recall more than 8 million vehicles worldwide due to troubles with acceleration, braking and floor mats that could cause gas pedals to stick.
In China, Toyota has recalled 75,522 RAV4s.
Of the 212 recalls, involving 3.21 million vehicles, initiated in China in the past five years, only seven were by Chinese auto makers, according to media reports, citing the AQSIQ.
But the lower rate of recalls is widely thought to reflect the weak system for catching and reporting defects.
China's market is dominated by foreign brand vehicles, generally produced in joint ventures with local partners.
As homegrown manufacturers are beginning to take a larger share of sales - they took about half of the total in February - they are facing closer scrutiny on quality, services and value.
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