By on April 9, 2010

Usually, it’s the car manufacturers who complain about fake parts coming from China. In the man-bites-dog equivalent of the parts industry, a Chinese government agency accuses Toyota of trafficking in highly illegal auto parts. Toyota is in deep doo-doo.

In a raid on two Toyota dealerships in Yiwu City in east China’s Zhejiang Province, local authorities found more than 1,700 types of uncertified auto parts, says China Daily. The parts were found in the warehouses of two dealerships belonging to FAW Toyota Motor Sales Co Ltd, a joint venture of state-owned FAW and Toyota.

Under Chinese law, many auto parts, as well as the whole car, must be CCC (China Compulsory Certification) certified. CCC is China’s answer to the Euro-centric ECE certification. Parts without the certification may not be sold, said Pan Wei, an official with the Zhejiang Provincial Administration for Industry and Commerce. The parts have been traced back to Toyota Motor Warehousing & Trading Co, a Shanghai-based Toyota subsidiary in charge of distributing auto parts to Toyota stores in China.

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17 Comments on “Toyota In Hot Water In China Over Illegal Parts...”


  • avatar
    b1msus93

    I didn’t know the Chinese government owned GM too.

  • avatar
    Mr Carpenter

    Why is this more than 50% the fault of Toyota? FAW (which also has JV’s with other non-Chinese car companies) owns 50% of FAW-Toyota.

    I call this high irony, however, given the “standards” of “quality” that many Chinese goods have been proven to possess over the past few years.

    Dog food poisoned. Antifreeze in children’s toothpaste. Un-crashworthy cars and SUVs being foisted on Europeans (who didn’t bite).

    That and the many thousands of stolen and pirated designs across all industries, gives me pause when buying goods.

    The trouble is, when in the USA, it seems that 80% of everything manufactured says “Made in China” on it (except for white goods and vehicles, at least, so far).

    Clearly anyone with common sense can tell you that this sort of imballance in “trade” is non-sustainable.

    Once again, the irony is that eventually it’ll hurt China as badly as it does the USA…

    • 0 avatar
      porschespeed

      Hey now, don’t forget the toxic waste drywall, melamine milk, and my personal favorite, the soy sauce made from human hair.

      Barber shop trimmings. Yummy.

    • 0 avatar
      Stingray

      “Hey now, don’t forget the toxic waste drywall, melamine milk, and my personal favorite, the soy sauce made from human hair.

      Barber shop trimmings. Yummy.”

      Huh? Whiskey Tango Foxtrot. WTF doesn’t even start to describe it. I want to puke.

    • 0 avatar
      porschespeed

      Only the tip of the iceberg.

      The Chinese food/medical industry is fodder for about 500 Upton Sinclair novels. To be fair, if they get caught (because they failed to bribe the correct official, or the official has fallen out of favor, or too many people die to ignore…) they just may end up in front of a firing squad.

      Sorry, the soy sauce story is one of the nasty ones. But, nothing cleanses like sunlight. (OK, fire works pretty well too…)

    • 0 avatar
      wsn

      Mr Carpenter, I can understand your point, but please don’t compare a Yaris to a 911 and claim the former is junk.

      I mean, Porsche can either stay upmarket and just ignore the Yaris. Or it can offer a mini Porsche at $14k that beats the Yaris in many ways.

      Same with American manufactures. They should either shut up and build expensive but desirable stuff, or compete head on and show the Chinese what is true quality at the same price.

      There isn’t a absolute standard for “good quality”. It’s all relative. If A beats B, then A is good. I would say that the Chinese products in Walmart are of good quality, because they beat up same priced domestic ones.

    • 0 avatar
      analyst

      Isn’t this a “damned if you do, damned if you don’t” for the Chinese government? When they punish people responsible for these, huh, “incidents,” they get called out. When they don’t, they aren’t doing anything.

      Let’s not forget that it’s just impossible to get high quality and low price at the same time. China only manufactures all this crap because there is a market for it. If nobody bought that junk, they are perfectly capable of making goods with better quality (and higher prices). But you, the consumer, wants it cheap. Well, you’ll get it cheap alright.

    • 0 avatar
      porschespeed

      “Let’s not forget that it’s just impossible to get high quality and low price at the same time. China only manufactures all this crap because there is a market for it. If nobody bought that junk, they are perfectly capable of making goods with better quality (and higher prices). But you, the consumer, wants it cheap. Well, you’ll get it cheap alright.”

      100% correct. The Chinese are fully capable of rather high-quality manufacturing. But, we aren’t paying for that. We’re paying for something just good enough to make it off the store shelves, with a healthy profit for the president of the company (hey, somebody’s gotta buy RR’s).

      I do kind of disagree with the thought that if we quit buying Chinese crap, manufacturing would return to the US. I’m afraid the boys running the show won’t let that happen until they have drained the US economy and siphoned off billions along the way.

  • avatar
    ponchoman49

    What does Toyotas latest screw up have to do with who loaned GM and Chrysler money?

    • 0 avatar
      geozinger

      It’s like rice and beans. Apparently you can’t mention one without the other.

      (sarcasm) From now on, I think we should all mention Trabant in all of our posts, whether or not it’s germane to the conversation.

      Trabant, rabant, Trabant, Toyota, Trabant, Trabant, bailout, Trabant, Trabant, Trabant, socialism, Trabant, Trabant, government conspiracy, Trabant, Trabant, Obama, Trabant, Trabant, Trabant. (/sarcasm)

  • avatar
    Stingray

    Pero por dios Toyota, ¿hasta cuando?!?!?!?!?!?

  • avatar
    captdownshift

    i wonder how good the knock off pedal boxes are…

  • avatar
    OMG_Shoes

    OK, but isn’t the CCC a bit of a con game? I seem to recall reading that the Chinese regs are basically word-for-word verbatim copies of the EU/ECE regs, and that in order to get the CCC you have to give Chinese authorities full blueprints and specs for your part, allow them to come in and inspect/photograph your production process, etc…all for a part that is already type approved as meeting the EU/ECE (and therefore the Chinese) technical regs…and then, after you’ve paid the fees and given all that proprietary information (no such thing in China) to the authorities, you get your CCC, but surprise surprise, your parts (or parts that look just like yours) are being manufactured all over China by everyone and their brother-in-law.

    Am I wrong about this?

  • avatar

    Just as you thought it was hard enough to create global products that simultaneously conform to MVSS, UNECE and JASIC requirements, in come the Chinese and say “evly supa powa has specification. So we make oul own.”
    You bang your head against your desk and get down to studying the new GB spec.
    Barely one paragraph into it you realise that it sounds familiar. Very familiar.
    In fact it is so familiar you can continue reading it with your eyes closed.
    This is because when China “wrote” their specs, they did what they do best: They copied it word for word from the UNECE regulations.
    However being a communist country, they decided that the ECE system was to unbeurocratic for their likings.
    So they complicated it.

    Here’s how it’s done for ECE:
    Call up a type approval house and set up an appointment for them to witness the testing. 2 weeks later get certificate and invoice.

    Here’s how it’s done for CCC:
    Wake up at 4am to call up the CCC Authorized Certification Body (ACB).
    Find they only speak Chinese
    Hire a Chinese translator
    Find the ACB is not authorised by CCC to assess your product
    Call up another ACB
    Fill in the CCC application
    Discover that there are many unwritten rules
    Resubmit CCC application
    Get certification.
    No, no it ain’t over…
    Send parts to CCC approved lab. All the approved ones are in mainland China.
    Re-hire translator to tell lab how your stuff works
    Get certificate
    No, no it ain’t over…
    Now your factory must be approved
    Buy plane ticket for Chinese inspector (The only official inspectors all live in mainland China)
    Book and pay for their hotel
    Welcome inspector and tour them around factory (beware: they might steal all your ideas)
    Pay the fees and yippee you’ve got your CCC!

    Ohh and renew application every f*cking year.

    Or give the CCC official a free car and all will be OK until the the other oiffical who remained without, raids your dealership.

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