Manufacturing News

Toyota agrees to better treat owners of recalled vehicles in China

Toyota Motor Corp. last week promised to make it just as easy for Chinese owners of RAV4s recalled for sticky gas pedals to get their vehicles fixed as it is for customers in the United States.

The move came after the Zhejiang provincial government in east China and a local consumer rights group criticized the automaker for not treating Chinese consumers as well as their U.S. counterparts.

In the United States, Toyota provides owners of recalled vehicles with home pickup and vehicle return, and cost-free alternative transportation while their recalled cars and trucks are being fixed. But such services are not provided in China.

In late January, Toyota announced the recall of 75,552 units of the RAV4 in China. The SUV model includes the same sticky pedals causing problems in vehicles in other countries.

The RAV4 is the only Toyota model made in China that needs to be recalled as neither of the two other faulty components giving rise to global recalls, namely floor mats and breaking software, are used in the manufacture of any Toyota vehicles in China.

On March 14, the Industry and Commerce Administration of the Zhejiang provincial government and a local consumer rights protection committee published an open letter demanding owners of recalled RAV4 vehicles get the same treatment as their peers in the U.S.

On March 22, led by FAW Toyota Motor Sales Co. (FTMS) president Matsuki Hideaki, a team of China-based senior Toyota executives flew to Hangzhou, capital of Zhejiang province, to meet officials from the Administration under the Zhejiang government. The two sides had five hours of intensive negotiations, according to information the Administration disclosed on its Web site.

A joint venture of Toyota and China FAW Group Corp., FAW Toyota Motor Sales sells the RAV4 in China.

On March 29, the Administration said in a statement that FTMS has agreed to the following requests:

1. To complete the recall of the ensuing repair work of the RAV4s in Zhejiang before the end of April this year;

2. FTMS and its dealers will provide at-home pickup and cost-free alternative transportation for Zhejiang-based owners of RAV4s that have yet to be recalled;

3. Consumers in Zhejiang who have paid for but have yet to receive delivery of an RAV4 have the right to cancel their purchase and get a full refund from FTMS;

4. Owners of recalled RAV4s in Zhejiang will be eligible for an unspecified amount of compensation from FTMS with the amount to be negotiated by the vehicle owners and FTMS's dealers in the province.

Of the 75,552 RAV4s to be recalled in China, about 10 percent are now owned by consumers in Zhejiang province, the Administration said in a statement.

It remains unclear whether Toyota will grant the same treatment to RAV4 owners in the rest of China. The spokesperson of FTMS has declined to comment.

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