The government is also calling for feedback on its proposed guidelines governing car defects. Experts say the draft is an upgraded version of similar regulations unveiled in 2004.
The new guidelines impose heavier penalties on car companies found to be in breach of their recall responsibilities. The maximum fine has been raised from 30 thousand yuan to up to 50 percent of the faulty product's value. Any illegal proceeds will be confiscated, and serious offenders will be forced to close up shop.
Fang Tianshun, China Assoc. for Quality said "The guideline is an improvement. For example, the scope has been extended to auto components, rather than just cars. Manufacturers will have to be much more careful."
In 2009, China surpassed the U.S. to become the world's number 1 auto market. But the number of complaints about defective products has also risen. China Consumers' Association received about 2,000 complaints in the first half this year, rising by 55 percent over the same period last year. Experts say recall regulations should allow for more input from car buyers and consumer organizations so as to better protect their interests.
Qiu Baochang, China Consumers' Assoc. said "On the issue of how to define defects, authorities shouldn't only consult car companies and car experts, but also take under consideration the experiences of car owners and consumer organizations."
The General Administration of Quality Supervision is currently collecting feedback from individuals and organizations. The modified guidelines will be provided to the State Council for approval.
- Legislator explains details of new recall guidelines 2010-07-08
- New recall mechanism welcomed by consumers, manufacturers 2010-07-08
- Toyota recall starts July 19th in China 2010-07-06
- China improves recall mechanism 2010-07-06