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Question posted: 02 Feb 2010 06:30 AM +0000,
7 answers, 75 views, last activity
25 Jun 2010 07:50 PM +0000
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If a problem is identified and established at OE level part should a company still shy from initiating correction and await litigation?
In India Government & consumer courts are not so strong as foreign countries. India is first place in Number of death due to road accidents.RTO is responsible to investigate about the accident. But they are not recording the investigation data, & escalate to government if same cause repeating for accidents for specific Brand of vehicles. I experienced this personally, Since I lost my younger brother in Road accident 4months ago. They not even spend more than 2 minutes to Inspect the Vehicle. In India No value for human life.There is no strong agency to prove the failure of OE parts in India and take the issue till get the right answer from vehicle manufactures like foreign countries.Find below the case study about recall of cars in USA for your reference.You came to know How strong the government & consumers are.
Toyota's response to the potentially lethal accelerator fault which has caused cars to career out of control came under renewed attack tonight following an investigation which cast fresh doubt on the way this week's crisis was handled.
The Guardian has established that:
• Government officials said Toyota did not tell them about the problem until prompted.
• Toyota decided the fault was not a safety issue when it received the first reports over a year ago.
• A senior executive in charge of product quality drove a Toyota with a faulty accelerator to a meeting with government safety officials after the company had announced a recall.
The revelations came as the company's president, Akio Toyoda, finally apologised to customers for a recall that could affect 8.1m vehicles worldwide. He confirmed the company is investigating a further problem with the brakes on Prius cars in Japan and North America which could lead to a recall of another 270,000 cars.
"We are facing a crisis," he said in a statement in Tokyo. "I offer my apologies for the worries. Many customers are wondering whether their cars are OK."
In Britain, where more than 180,000 vehicles have been recalled, it emerged the government demanded information from Toyota at the beginning of January after government safety officials were alerted to the scale of the risk by their US counterparts. Toyota knew about the problem from the winter of 2008/09, but only provided detailed information to the Vehicle and Operator Services Agency (Vosa), which registers recalls on faulty cars, on 22 January this year, according to the government.
Toyota executives have also admitted that they treated 26 cases across Europe in the winter of 2008/09 as "a quality issue". Only when the problem recurred this winter did they treat it as a safety issue. In the meantime drivers of models left on the road reported their cars speeding dangerously out of control. One driver reported that his Avensis accelerator became stuck last August while overtaking at 65mph.
But in perhaps the most astonishing twist, Neal Standen, Toyota's general manager of product quality, admitted he drove his company Avensis with a stiff accelerator to a meeting on Monday with government officials to formally register the recall, despite Toyota's own advice that customers experiencing any accelerator pedal problems should "drive to the nearest safe location, shut off the engine and contact a Toyota centre for assistance". He said he had driven the car with the stiff pedal fault for six months and had not yet taken it for repair. He said: "I choose to drive that car every day."
A spokeswoman for the Royal Society for the Prevention of Accidents said: "Somebody in his position should have known better. He should have stopped driving the car and had it checked immediately. If this is a company car we would hope the employer would provide a replacement."
Toyota denied it has put customers' lives at risk and insisted it had responded as quickly as possible to the problem.
"There were so few cases and no accidents [last winter], we didn't think it was a safety issue," a spokeswoman said. "We now have a larger number of cases and we are now treating it as a safety issue. That is how we value our customers."
The company also defended its decision not to inform the authorities about the problem last winter.
"During this winter period, we started to see the cases increase," said Steve Settle, Toyota's director of after-sales. "We lodged 20 reports from November to January and compared to the previous year that was a significant difference."
The RAC, which represents motorists in the UK, said the revelations about Toyota's handling of the situation were "worrying" and called for a review of how car safety recalls are handled.
"Motorists would hope that governments are not forced to request information about these problems," said its spokesman, Adrian Tink. "From a motorists' perspective, these are worrying concerns."
A spokeswoman for the Department for Transport said: "We expect them to come and tell Vosa about problems when they see a pattern emerging about an issue with design and construction. They need to see it as a pattern. At that point we expect them to tell us about it."
The US government has also had to push Toyota to act on the problem. "While Toyota is taking responsible action now, it unfortunately took an enormous effort to get to this point," Ray LaHood, the US trasportation secretary said this week. "We have been pushing Toyota to take measures to protect consumers."
recall of a product means a total failure of the manufacturer in his primary duty.it is needless to mention that onus of delivering defect free products to the consumers lies on the manufacturer.this is nothing but values which if forgotten / neglected consumer should be in a position to dethrone the market share of that company and Govt.should support by enacting suitable laws.till now Indian consumer is not rigid / very particular regarding the strict quality norms and the time takes to get money back through legal means is very high,one is not very keen on pressurising companies to recall defective products.Indian automobile companies are very much particular about respect and their market share,certainly no one will be happy to declare themselves that they are not up to the mark!!
@ Dear Mr Bankura,
A brand to be termed good is based on its performance which in turn finds basis on quality of components used.
The question typically refers to flaws from design to selection and subsequent use in an automobile whereupon companies build their reputation on owning up a flaw and winning customer confidence.
"Take it or leave it" handling is mostly prevalent in monopoly markets and surely not expected in fiercely competitive environs yet refuses to budge from India.
As brand image is very strong here in india and people take it emotionally. for instance, brands like baleno, versa from maruti stable din't work well even though they were good products.once the image is not so strong during initial stint in this(indian) market, it is very tough, in fact close to impossible to make that product click in this market. so this happened to baleno,which initially was introduced at a higher sticker price of 8 lac, came down to even 5.5 lac at the time of discontinuing, but stl couldn't sell. thus manufacturers here fear, that if once a negative feedback goes in the market in the form of recall, it will be tough for that product to sustain the sales volume as before. though there are brave hearted manufacturers like Honda, who recalled their first generation City VTEC,due to poor calibration of ECU. and still it kept going strong and set sales chart on fire. if the product is excellent and brand image is strong, then its not too difficult to take such steps but if not, then the manufacturer is in a mess. like the same kind of step is not possible for Mitsubishi,if something goes wrong with its products as the company already does not enjoy a good market presence and brand image.
In other countries the government takes serious action against such incidents, but Indian government doesn’t see it as a big issue. I kind of feel that such recalls should be made compulsory when there is a fault. The companies in the west can be sued for millions by the customer. The company then might lose billions of dollars in compensation and legal fees alone. So, they save face or rather gain some good reputation by doing a recall. Come to India and the legislative system in India ensures that the last thing a miffed product owner will want is to get into an unending lawsuit.
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