Auto makers need to listen car owners for faulty new cars : Recall Policy

Hyundai Motor recalls cars over airbag problems in US. According to reports, Hyundai’s US dealers will recall 199,118 Santa Fe SUVs. In U.S., there is strong legislation that allow the government to punish auto makers in case of non-disclosure of car defects. But in India, there is still need of clear and strong recall policy.

There are many complaints from new car buyers and auto makers sometime do not accept faulty parts and avoid replacing it under warranty, that is what car owners claim. The government is planning a mandatory policy on car recalls as the auto industry seems reluctant to accept any penalty or make companies compulsorily announce defects in vehicles.

A meeting later this month, to be attended by ministries involving the auto sector, is likely to discuss a structured, and statutory, policy for car recalls.

Sources said the government would oppose the guidelines which the Society of Indian Automobile Manufacturers is set to unveil on Monday. SIAM’s guidelines do not impose penalties and merely “expect” the car maker to declare defects. “The move will serve no purpose as companies are not open to admitting faults when it is based on self-regulation,” an official said.

The government is planning a mandatory policy on car recalls as the auto industry seems reluctant to accept any penalty or make companies compulsorily announce defects in vehicles.

A meeting later this month, to be attended by ministries involving the auto sector, is likely to discuss a structured, and statutory, policy for car recalls.

Sources said the government would oppose the guidelines which the Society of Indian Automobile Manufacturers is set to unveil on Monday. SIAM’s guidelines do not impose penalties and merely “expect” the car maker to declare defects. “The move will serve no purpose as companies are not open to admitting faults when it is based on self-regulation,” an official said.

The proposed code requires members to contact customers who have bought a vehicle with a faulty auto part. The code also makes it a vehicle maker’s responsibility to replace faulty parts at its own cost.

But the code is not a replacement for a national law. It doesn’t impose financial penalties on auto makers for failing to own up to and refund faulty parts, as a law could. Some laws, like those in the U.S., even fine companies that do own up to and replace parts.

S. Sandilya, president of automobile manufacturers’ society, says he’s against the government mandating penalties through law as vehicle makers already are committed to high standards and will pay for replacements. “Auto makers already pay out of their profits for replacing faulty auto parts. That in itself is a big penalty,” Mr. Sandilya said. “No company will produce a product that jeopardizes safety of its customers or its own reputation.”

But what if auto makers refuse to stick by the voluntary code or what if they don’t act at all even when faced with clear evidence of a faulty component?

What India needs, in this case, is strong legislation like in the U.S., that would allow the government to punish auto makers.

Source:

Government revs up for car-recall policy
Hyundai Motor recalls cars over airbag problems in US