Recalling Faulty Vehicles (3)

Adapting to recall system

Due to size discrepancies in its fuel tanks, Zhejiang-based automaker Geely recently ordered a nationwide recall of 55,018 MK and MK2 vehicles manufactured between January 1, 2009 and November 30, 2011.

This is the seventh time domestic brands have had to recall products in the past three years, far fewer than the 170 recalls by joint venture manufacturers and foreign brands.

Cui Dongshu, Deputy Secretary General of the China Passenger Car Association, says the reason there are fewer recalls by domestic brands is that local manufacturers worry about damaging their reputation.

With smaller sales volume than those of joint ventures and imported cars, domestic manufacturers were unlikely to order a recall. The new regulation forces domestic manufacturers to consider the possibility of massive penalties should they fail to issue a recall. Cui predicted that the number of domestic brand recalls will substantially increase.

The new regulation will promote the development of domestic brands, which are likely to enhance the quality of their management and their brand image, said Cui, thereby strengthening consumer confidence.

Zhu Huarong, Vice President of Chang'an Automobile (Group) Co. Ltd. based in Chongqing, said that domestic brands will face increasing pressure to recall products. "We have fallen far behind international brands in engineering development, quality control and suppliers' parts and components," he said.

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