Car recalls touch China's parts companies to wear a “sweeping spell”

The frequent occurrence of car recalls makes the related laws and regulations perfect and perfect. Recently, relevant experts disclosed that the “Regulations on the Management of Defective Automobile Recalls” are being revised and will be upgraded to administrative regulations or laws in the future. The current “Defective Automobile Recall Management Regulations” stipulates “penalties”: “If any of the following circumstances occurs, the competent authority may order the manufacturer to recall it again, make a public criticism, and the quality supervision inspection and quarantine department shall pay more than 10,000 yuan to 30,000. RMB fines." In ordinary people's view, for a capital-intensive industry, such money does not provide any punitive effect on illegal manufacturers, and it is obviously not enough for car companies and parts and components companies to pay attention. There is indeed too little relative to the potential harm to consumers caused by defective automotive products and the potential harm to society.

According to reports, the “Management Regulations” issued in the revised draft stipulates that if a producer violates regulations and constitutes an illegal act as stipulated by product quality laws and regulations, if it has not been corrected within the time limit, it may impose a fine of 200,000 yuan up to 500,000 yuan. The production company refuses to bear the responsibility and will be subject to a fine of three times the value of the goods; it will revoke the license certificate and revocation of the certificate which have caused serious consequences; if it constitutes a crime, it shall be investigated for criminal responsibility according to law."

The new regulations are obviously adding “string spells” to car companies and parts and components companies. However, compared with the entire vehicle, the parts and components companies may face more serious problems.

Regardless of the status of “Made in China” in the auto parts industry, it is faced with the pressure of double rising labor costs and RMB exchange rates, just like “Made in China” in other industries. However, the introduction of new regulations for national recalls is no different from adding new technology and production costs to parts and components companies. At present, mass-produced “Made in China” parts are based on low labor costs and the so-called undervalued RMB exchange rate. And these often lead to the emergence of product quality problems. Recently, the country has begun to optimize the industrial structure of parts and components, which has become a new life and death gate for parts and components companies.

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