Gasgoo.com (Shanghai February 6) - The Legislative Affairs Office of the State Council released the draft version of guidelines for automobile recall management this weekend, China Business News reported today. The Office will be collecting opinions from all fields on the new legislation, which aims to expand the requirements for automobile recalls, with manufacturers who fail to issue recalls facing stiff penalties.
The legislation will focus on faults caused due to poor design, manufacture or rating of an automobile model or class that pose a safety risk to people or property. Faults that pose bodily harm to the owner or passengers of a vehicle, that cause unreasonable damage to property, or that do not comply with industry standards will all be targeted for recalls.
The legislation goes one step further in clarifying the recall process. According to the contents, a recall is the full procedure of an automobile manufacturer resolving a safety issue with its product via maintenance, replacement or accepting return of said product.
If the manufacturer fails to actively initiate a recall, the new legislation calls for the State Council's Quality Control Department to contact the manufacturer upon discovering a fault in order to conduct an investigation. When necessary, the State Council can go one step further and conduct a full survey. If a fault is confirmed, or if the State Council has sufficient proof to believe that a viable safety risk exists, it should order the manufacturer to order a recall. The State Council also holds the right to issue a warning if such a flaw is confirmed.
The manufacturer is required to take the necessary action to resolve any problems present. Any financial costs that arise from the recall should be paid for by the manufacturer.
