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VW's China Unit to Recall Cars After TV Broadcast
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VW AG China will recall cars with direct shift gearbox systems with quality issues, including acceleration problems. This follows a CCTV broadcast of consumer issues program 315 on World Consumer Rights Day. The 315 program has taken up quality issues of foreign brands in China, including Carrefours, McDonalds, Yum Brands, and Apple. The program shows the shift in China supported by the new government for greater attention to consumer issues. It acts as a signal to foreign manufacturers in China to provide the same quality and attention to detail in the Chinese market that is provided in their home markets. For companies such as VW that depend on the Chinese market for growth, and generally for German, Japanese and U.S. manufacturers that depend on export growth, this will be the new standard for the Chinese market. Companies are at greater risk of quality problems during periods of rapid expansion, such as that being experienced by VW as it ramps up to become the leading global automobile manufacturer. This is similiar to the situation Toyota faced in 2009 leading to recall problems in the U.S. and negative publicity.
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VW's China Unit to Recall Cars After TV Broadcast
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The steadily growing automobile market in China in 2014-2015 (6)- CCTV 315 and the importance of consumer issues for VW, GM, Toyota
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Linked Articles
VW's China Unit to Recall Cars After TV Broadcast
Wall Street Journal 03/17/2013
VW to Bolster Its Output in China
Wall Street Journal 03/15/2013
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