Toyota denied economical compensations

　　The dream to be the first domestic auto owners who get economic compensations during an recall lasted only for two days. General manager of Faw Toyota, Motor sales corporation hideak said in an interview that consumers had their RAv4 recalled including those in Zhejiang could receive additional financial compensations except a free testing.

　　In addition to free services, Hideak also expressed 84%,that is 63,367 RAV4 have been recalled and the entire recall activity is expected to be completed by April. For customers who want to cancel their reservation of RAV4 ,full deposit will be returned. There is no need to provide alternative vehicles since the maintenance time o one RAV4 is as short as 30 minutes. The cost of the recall and related services will be fully shouldered by the manufacture rather than distributors.

　　March 29, Zhejiang Industry and commerce bureau claimed FAW-Toyota has approved the five proposals of making a timetable,door-by-door recall, providing alternative vehicles and economical compensations as well as refunding full deposits.

　　However, the statement of Hideaki undoubtedly denied the announcement that RAV4 car owners will receive financial compensations fro Toyota issued by Zhejiang Industry and commerce bureau.

　　A insider from Faw-Toyota told First Financial Dailythat the corporation basically agreed with other requirements of Zhejiang Industry and Commerce bureau except economical compensations. In addition ,the range has been expanded to the whole country. I his view, the most significant meaning of this matter(Zhejiang Industry and Commerce Bureau urged Toyota offer RAV4 owners financial compensations ) lies in policy level. It’s time or the government to make some adjustments to the product guarantee policy.

　　Citing regulations on defective vehicles recall issued in 2004 by four ministries under AQSIQ（General Administration of Quality Supervision,Inspection and Quarantine of the People's Republic of China）， which deduce propose any compensations or corresponding penalties for hiding defects or refuse to carry out a recall. Toyota provides no financial compensations for Chinese consumers.

　　However, Zhejiang local governments brought related requirements on the base of local regulations.

　　Product guarantee catalog of Zhejiang introduced in 2000 claimed that manufactures should allow defective vehicles to be repaired freely, replaced and refunded in one year or within 15,000 kilometers.

　　According to the 36th rule of consumer right protection Act of Zhejiang province, for products belong to Three guarantees, dealers should visit the customers for service or take change of the transportation if it is their responsibility to repair, replace and refund the products.

　　If consumers are asked to transport the product themselves, dealers should bear related transportation costs, income loss, travel fee and othe reasonable expenses.

　　Chen Guang, a lawyer of shanghai branch of Zhongyin Law Firm told the reporter that the recall carried out in Zhejiang should be in accordance with relevant regulations of Zhejiang,comply with both local and national laws. Though regulations on “defective vehicle recall “does not mention compensation issue, it does not express compensation isn’t reasonable either.

　　Even if Toyota approves to offer compensations, travel and missed work for every customer will be less than 200 Yuan. The total 75,000recalled cars need about 15 million yuan.

　　Automotive expert Zhiyong said that compensations are actually not a big mount for a car manufacture. The reason Toyota denied financial compensation, on one hand is the governments regulations have rigid constraints, on the other hand, as FAW-Toyota always thinks from the company’s perspective, the interest of consumers have not been fully taken ionto consideration and Toyota’s Customer first philosophy has not been reflected.

　　Compared with the United States market, Toyota’s action has been totally different in China. In the US market, Toyota made commitment to the owners of the recalled vehicles to provide additional fetching and send back recalled services as early as Feb 26, including:Minimizing maintenance time; providing door-by-door service, sending owners to dealers or to wok. If the owner is unable or unwilling to drive their own car, Toyota will provide compensations for renting or calling a taxi within a reasonable time.

　　In addition, Toyota has also promised a compensation of 7,500 to 75,000 U.S. dollars for the distributors related to the recall in the United States.

　　(Translator: yalong/ Jessie)

　　See original Chinese report Please click: http://auto.sohu.com/20100402/n271274107.shtml