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Old 2nd December 2014, 16:03   #31
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Default Re: Too Many Recalls: Side-effect of Competition or something else?

Competition reduces the selling price. This in turn impacts the margin. Hence manufacturers are force to optimize their design, which generally means reducing design tolerance. It can be weight reduction, thickness reduction etc.

It should be fine for close design tolerances if the quality is maintained consistently. But for many components coming from external suppliers, maintaining consistent quality will be an issue with low cost production facilities they have to meet the requirements. Also in mass production only sampling Quality check will be done (initial batch inspection would have been 100%). Hence these type of issues can be expected. Stabilization will be attained after few months.

Recall cannot be PR strategy, as it involves cost and also impacts the name of the manufacturer.
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Old 10th April 2015, 09:05   #32
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Default Re: Soon, India to have a "Recall" Policy

The proposed recall /defects policy gets watered down in fines imposed.

Government cuts proposed fines on auto companies for faulty vehicles.According to the earlier version, complaints from 100 vehicle owners were needed to consider a recall. The new draft says the decision will rest on the proposed national authority. Auto makers said the draft lacked clarity.

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The fourth and latest draft of the Road Transport and Safety Bill proposes to impose a penalty of Rs 50,000 for manufacturing faulty vehicles and Rs 1 lakh for refusing to recall them. The original suggestion was Rs 5 lakh for both. Offenders could also be sent to jail for up to three months, a proposal that remains unchanged in the latest version
If a manufacturer, as soon as it becomes aware of a
defect in a particular model, informs the national authority with proof and recalls the vehicle, then it will not be liable for the fine. However, the company will have to compensate the buyers for the full value of the vehicle. They can also either replace or repair it

http://economictimes.indiatimes.com/...w/46869939.cms
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Old 21st April 2015, 17:29   #33
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Default Re: Soon, India to have a "Recall" Policy

Just read this on ET. From lack of clarity on mandatory recall policy for vehicles with Mfg Defects, We now have a response from the concerned minister in the parliament that there will be no mandatory recall policy and it is upto manufacturers to do a voluntary recall . Wonder what made the Govt change this. Lobbying from Manufacturers ?



http://economictimes.indiatimes.com/...w/47000748.cms
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Old 22nd April 2015, 20:33   #34
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Default Re: Soon, India to have a "Recall" Policy

I hope our politicians get a defective vehicle with brake failure or a leaking fuel line , maybe then they will reverse this stupid decision.
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Old 22nd April 2015, 21:15   #35
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Default Re: Soon, India to have a "Recall" Policy

If I'm right, this is the second instance where the govt. goes completely against common sense. First was reducing the crash speed test to 56 from 64 kmph and claiming that is what is 'suitable' for India. And now this. So what is it this time, mandating voluntary recalls is inappropriate for India?
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Lobbying from Manufacturers ?
Most likely a lot of green has changed hands somewhere...
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Old 18th April 2017, 15:57   #36
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Default Re: Soon, India to have a "Recall" Policy

The Lok Sabha has recently passed the Motor Vehicles (Amendment) Bill, 2016, which introduces a slew of amendments to the almost three-decade old Motor Vehicles Act, 1988.
The Bill will now have to be passed by the Rajya Sabha, before being forwarded to the President for his assent.

One of the most important changes as per the Parliamentary Standing Committee (PSC) has been the introduction of statutory provisions providing auto recalls.

Here it is:

- The central government (Authority) will have the power to order a manufacturer to recall vehicles of a particular model if there is harm to the environment, passengers or road users.

- If the defect in that particular type of vehicle has been reported to the Authority by a percentage of owners, by a testing agency or if the information has come from any other source, and...

- Auto manufacturers have the right to initiate auto recall proceedings after informing the Authority of such recall.

- The manufacturer or the Authorities could order a full recall and once this is achieved it is mandatory for the manufacturer to either: (i) fully reimburse; (ii) replace or (iii) repair the vehicle.

- There is also a provision for imposition of fines by the Authorities. This would effectively be a game changer as there has never been any provision permitting Authorities to impose monetary penalties on automobile players in India when a fault is discovered by a consumer and a recall is followed.

- No fines would be levied, if a manufacturer notices a defect and voluntarily informs the Authorities and initiates a recall. However, such manufacturer would still be required to reimburse the consumer or replace / repair the defective vehicle

- The legislation is a paradigm shift as it moves from a voluntary code to a legally enforceable regime.

- The primary onus lies on the manufacturer of the vehicle which could be a debatable proposition as various auto component companies are involved in the assembly chain leading to “manufacturing

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