Toyota refuses to pay economic compensation in China

Toyota has a new way to explain its recall compensation for RAV4 owners in China.

Hideaki Matsuki, General Manager of FAW Toyota Motor Sales Co., Ltd. said in an interview that Toyota would offer three free testing service options for Chinese RAV4 owners to choose. In addition, vehicle owners will not get additional financial compensation for recalled cars.

In addition to providing free services, Hideaki Matsuki also said that in China Toyota has recalled 63,367 RAV4, and is expected to complete the recall by the end of April. Those customers who have made reservations for RAV4 will get their full deposit returned if they want to return the car. The cost of recalling vehicles and related services will be paid by the manufacturers, and distributors don't need to pay for any cost.

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 transport, allowing full deposit refunds and compensation for economic losses.

But statements made by Hideaki Matsuki clearly denied the news of economic compensation for Toyota RAV4 car owners released on March 29 in Zhejiang.

The reason why Toyota did not compensate the owners in China is based on "regulations of recalled defective motor vehicles "jointly issued by General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) and three ministries in 2004.

The regulations do not require manufacturers to pay compensation for recall, nor does it name corresponding penalties for those who find car defects and hide the fact. Zhejiang province's request for compensation is based on local regulations.

There is still a big difference between the recall services offered to customers in the United States and what was offered in China.

In the U.S. market as early as Feb. 26, Toyota promised to provide additional services to the recalled car owners, including: shortening maintenance time as much as possible; providing "door-to-door" recall service; providing vehicle to take owners to dealers or send owners to work and if the owner is unable or unwilling to drive his car, within a reasonable time Toyota will provide compensation for rental cars or taxi.

In addition, Toyota has promised to give distributors in the United States affected by the recall events compensation ranging from 7,500 U.S. dollars to 7.5 million U.S. dollars.

By People's Daily Online