Auto 3-warranty to countdown. supporting regulations being drafted

The Regulations on Automobile Repair, Replacement and Return Liability (hereinafter referred to as "Regulation") will be enforced soon.

In the seminar of defected automobile recall management held recently, Wang Lixin, Deputy Director of Quality Administration Division of AQSIQ (General Administration of Quality, Inspection and Quarantine) said that solicitation of public opinions on the warranty regulation came to the end and would be promulgated in proper time. Moreover, another similar regulation: Automobile Qualities Guarantees Ordinance (hereinafter referred to as "Ordinance") would be publicized and solicit opinions.

It is learned that the "Ordinance" will serve as legal basis for the fulfillment of automobile warranty made by auto dealers, which is similar with American "Lemon Law". Any problems out of the regulation will be turned to the "Ordinance" for a solution.

OEMs raised many problems in implementing the policy, for example, it would involve consumption tax, purchasing tax, re-licensing and insurance and so on. It is hard for OEMs to coordinate with involved parties including various government departments.

According to the statistics released by National Consumer Association, there were 23,706 complaint cases about automobile from 2002 to 2005, of which 3,919 in 2002 and soared to 6698 in 2005, nearly doubled in 3 years.