Chinese Government Getting Serious about Vehicle Recalls
The Chinese government has released new regulations for vehicle recalls. According to Automotive News China, starting next year, automakers who fail to recall vehicles in a timely manner can expect to face fines between $80,000 and $160,000.
That may be a small sum for an automaker, but the new regulations also allow the government to levy a fine of between one- to ten-percent of the total sales value of the recalled units.
What's more, automakers could face revocation of their production licenses if they knowingly conceal defects or refuse to stop selling faulty vehicles. Currently, automakers in China operate under guidelines enacted some six years ago. The outgoing standards only impose a tiny fine of between $1,600 and $4,800 for failing to recall vehicles. Between 2004 and 2011, manufacturers in the country recalled some 6.2 million units.
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