By on July 9, 2010

Did someone say that the Chinese are good at – how shall we put it – warming up to foreign ideas? Ray LaHood’s revenue-generating ideas must have impressed the hell out of the Chinese. I can just imagine the discussion: “Come on, the Americans raise the penalty from $16.4m to $200m, so why can’t we? It’s in the name of safety. Ni dong bu dong?” Now therefore, “the Chinese government is set to impose much stricter penalties on automakers if they hide problems with their vehicles to avoid recalls,” reports The Nikkei [sub].

So far, automakers got away with a financial slap on the wrist. Under current rules, introduced in 2004, covering up automotive defects can cost a pittance of $4430, max, no matter how many cars are affected. Under newly proposed rules, hiding a defect could downright wipe out an automaker in China. (Read More…)

By on April 2, 2010

A few days ago, we reported that Toyota had caved in to demands of the Commerce Bureau and the Consumer Protection Committee of China’s Zhejiang Province. Under the agreement, Toyota will reimburse Zhejiang customers for losses sustained from the RAV4 recall. Toyota will send people to pick up and deliver the affected vehicles, and will provide a loaner while the car is in the shop. The whole thing was started by New York’s AG Andrew Cuomo who strong-armed Toyota into supplying similar services to recall-affected residents of the Empire State. The Zhejiang-accord had The Nikkei [sub] worried: “Such an agreement could lead to demands for similar deals from customers in not only other provinces, but also other countries.” It didn’t take long. (Read More…)

By on March 29, 2010

If you, dear reader, had expected (or, perish the thought, hoped) that SUA hype and rapid fire recalls would bring Toyota down, then stop reading immediately. What follows will not be good for your circulatory system. (Read More…)

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