Shanghai, April 2 (Gasgoo.com) Toyota Motor has explained its new way to compensate China's buyers of the recalled RAV4 vehicles: there is no financial compensation but free service options, People's Daily reported today.
Toyota will offer three free testing service options for Chinese owners of the recall RAV4 SUVs, said Hideaki Matsuki, general manager of FAW Toyota Motor Sales Co., Ltd., adding that vehicle owners will not get financial compensation for the recall.
The company has recalled 63,367 units of the RAV4 in China since late Feb., and will complete all recalls (of 75,552 units) this month. Customers who have placed orders for the RAV4 will get their full deposit back if they want to return the car. Manufacturers will pay for the recalls and related services.
On March 29, 2010, Zhejiang Province Commerce and Industry Bureau said FAW Toyota had accepted five of its proposed suggestions, including making a recall timetable, providing means of transportation, allowing full deposit refunds and compensation for related costs.
Toyota will not compensate the owners in China because the country's related regulations issued in 2004 do not require automotive manufacturers to pay compensation for recall, People's Daily said.
The Japanese carmaker has promised to give distributors in the United States affected by the recalls compensation ranging from $7,500 to $7.5 million.
