Chang'an Suzuki Automobile company, a Sino-Japanese mini car joint venture, has announced it will recall over 150,000 cars it produced in China due to potential fuel pipe problems. The recall represents the biggest of its kind in China in terms of the number of affected vehicles. The move comes as China will officially carry out vehicle recall regulations on October 1st.

The company, jointly held by the Shenzhen-listed Chang'an Automobile Company, and Japan's Suzuki Motor Corporation, is among the few auto makers to recall its defaulty cars in China.

Automobile recalls are new to customers and manufacturers in China, although it is a common practice in developed markets.

In the past, many manufacturers shunned recalls of their faulty vehicles as a result of the lack of concerning regulations. But things are changing. According to China's first vehicle recall regulation, which will take effect October first, auto makers will be fined heavily if their faulty vehicles not recalled.

Chang'an Suzuki Automobile Corporation, which is based in Southwest China's Chongqing Municipality, said it would pay at least an extra five million yuan to repair the fuel pipes in the affect Alto cars.

The company said any owners of the affected Alto cars can check and repair their vehicles free of charge at its service stations between now and March, 2005.

The car owner said recalling and repairing cars for customers is certainly a good thing. It won't affect customers' purchasing habit. Instead, consumers will trust the company more.

Yu Xianzhong, an official with China's General Administration of Quality Supervision, Inspection and Quarantine, said voluntarily recalling default cars shows the professionalism of auto makers. It will not ruin the image of the car-maker at all. Actually this is a strategic move in facing fierce market competion and it should be encouraged.

The official adds that his department is establishing a national defaulty car reporting system and regular check-ups will be carried out once the country's new vehicle recall regulation takes effect in less than a month time.

Analysts say with the rapid growth of vehicle sales, automobile recalls will take place in China more frequently. Automakers in China will face mounting pressures from recalls, which can prove costly sometimes, and should be prepared for the upcoming regulations.

Source: CRIENGLISH.com