Toyota-Zhejiang talks: Toyota refuses

　　According to Legal Daily, a delegation led by hideaki matsuki, the general manager of FAW Toyota sales company, a Sino-Japanese joint venture, was in a 5 hours close-door negotiation with Zhejiang Provincial Industry and Commerce Administration Bureau in Hangzhou, March 22, which was the first Chinese authority to start talks with Toyota, since it announced a comprehensive auto recall in China, January 29.

　　During the negotiation on March 22, Toyota has agreed to meet following requirements such as setting a timetable, providing a door to door service and free loaner cars, paying full refunds for the return of vehicles. The negotiation did not reach an agreement due to Toyota rejecting to compensate Chinese consumers.

　　The Industry and Commerce Administration of Zhejiang Province, along with Zhejiang Provincial Consumer Protection Commission raised concerns over Toyota’s discrimination against Chinese consumers during its recall of faulty vehicles in China, March 14, and pointed out some problems confronting Toyota. Chinese consumers don’t enjoy the same right during the recall program, and they aren’t compensated over any expenses. Toyota even launches different remedy approaches for the same faulty cars in China.

　　Sources familiar with the matter told the newspaper that complaints over the following problems are the fiercest: firstly, Toyota was being complained over its slow in repairing those faulty vehicles; secondly, Toyota refused to compensate Chinese consumers for any expenses; thirdly, Toyota disagreed to pay back down payments for those consumers who didn't pick up cars and asked for the return of vehicles; fourthly, some Toyota 4s shops concealed the truth from consumers more or less, including increasing prices with disguise, randomly attaching escape clauses, selling inferior products at best quality prices, unnecessarily replacing the whole unit instead of some faulty parts, forcing consumers to buy insurance, and remaining vague in pricing.

　　Therefore, according to the above problems confronting Toyota, Zhejiang Provincial Industry and Commerce Administration Bureau, along with Zhejiang Consumer Protection Commission, put forward the following 5 requirements: first, Toyota should set a clear timetable for its recall and speed up the remedy process. Second, Toyota should provide a door-to-door service for consumers. Third, Toyota should provide the same vehicle model for consumers’ temporary use, if the consumer is unable to use his own car during the recall process. Fourth, Toyota should allow for the cancellation of car contracts and pay full refunds in exchange for the return of vehicles which are not delivered to its owners. Fifth, consumers who voluntarily get their vehicles recalled should be compensated for travel, loss of working time and some other related expenses.

　　The former four requirements have been accepted by Toyota during the negotiation on March, 22.

　　The agreement has not been reached at the end of negotiation due to Toyota rejecting to compensate Chinese consumers. Since the Regulations on Faulty Automobile Recall make no provision in this aspect, Toyota disagrees to compensate Chinese consumers over any expenses, and declared as well, even if some complaining consumers accepted compensation for some expenses, it’s appropriate to conceal the sum of money so as not to violate any recall conventions for the whole automobile sector.

　　However, Zhejiang Provincial Industry and Commerce Administration insists that, automobiles belong to products guaranteed for repair, replacement or return, and the period covers one year and 15,000 kilometers in compliance with Zhejiang Products Catalog Guaranteed for Repair, Replacement or Return. According to article 36 of Measures for Implementing Law of the People's Republic of China on the Protection of Consumer Rights and Interests in Zhejiang province, as to large-sized commodities guaranteed for repair, replacement or return, business operators should bear the responsible costs such as expenses for carriages if consumers demand repair, replacement or return.

　　According to someone with knowledge of the matter, the final results are not attainable resulting from one focus: as to civil compensation, Regulations on Faulty Automobiles Recall, formulated by State Administration of Quality Supervision, Inspection and Quarantine, along with some other ministries, make no provision, however, there is a specific provision of compensation in Measures for Implementing Law of the People's Republic of China on the Protection of Consumer Rights and Interests in Zhejiang province, which was established by the standing committee of Zhejiang Provincial People's Congress. One is the ministerial regulation, while the other is local one. It’s undisputable for two parties to adopt those regulations. (Translator: Qinghua/serena)

　　See original Chinese report please clicks:

　　http://auto.sohu.com/20100326/n271123118.shtml