It’s easy to toss aside "news" stories published by the state-run and edited China Daily, but often many of these "stories" are actually a clue on which way the breeze in Beijing is blowing.
On Dec. 19, the China Daily published a story questioning why so few cars produced by native Chinese companies have been recalled in recent years. With that premise, one would anticipate piles of propaganda poo about the greatness of Chinese engineers and designers and production workers. (And Americans may make the obvious jokes about Chinese “quality.”)
I know that’s what I expected. But that’s not what we got.
Instead, the story pointed to a significant state push for improved product quality, maybe even a thrust toward “world class” passenger vehicles on par with, dare we say, Honda or Ford or even Mercedes-Benz.
China Daily noted that of the 66 passenger-vehicle recalls in China in 2011, only two were by domestic brands. In 2010, it was just one out of 95 recalls, and 2009 saw just two out of 56 recalls.
The rest of the recalls came from joint venture companies operating in China or by brands imported to China, where, it was clearly mentioned, Western ways and regulation are prevalent; at the first sign of possible trouble these carmakers error to the side of lawyers and pull a recall.
Still, the lack of recalls, China Daily stated, was “raising concerns over weak safety regulations” in China. For a country intent on developing world-class manufacturing in all sectors and not interested in allowing market forces to force quality improvements, those “concerns” can become actionable regulation.
For instance, when the Chinese were challenged by our added tire tariff and quality concerns from North America and Europe and other markets, the Chinese government stepped in and decreed that home-grown tire companies had to improve quality, shift rapidly to radial production, and otherwise clean up their acts. Done and done, and the result was a clearly improved group of world-worthy tire producers and a pile of shuttered makers that could not keep up.
The same, one can sense, may come to pass in the car market.
“Industry insiders note that developed countries have strict and specific standards for virtually every auto part and component, but China’s regulations lack that level of detail,” the story said, noting that among domestic makers, “recalls are usually initiated only when problems actually occur.”
“Light punishment is another reason for the lack of domestic recalls. Carmakers face a maximum fine of just 30,000 yuan (about $3,000) for concealing defects,” while automakers in Western countries “can be fined from 15 million yuan to more than 100 million yuan” and “violators can face penalties of up to 15 years in prison.”
The fines are not the concern here. What is important to China is that its products are competitive in major Western countries, allowing its auto industry to grow in the same fashion as GM, Volkswagen, BMW and others have done. They will weed out the weak and unwilling and incapable through regulation rather than “the invisible hand” we rely (and sometimes suffer) from.
Let’s see what comes next.
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I cringe every time I see the words “cheap” and “tires” in the same sentence. So my natural reflexes kicked in when I saw a Dec. 18 news release from an online outfit called Tires For Sale titled, “What You Need to Know About Quality and Cheap Tires for Sale.”
What I didn’t expect was a comedy routine.
Tiresforsalesite.net claims that it “speaks authoritatively on where automobile owners can go to find reasonable priced tires that are offered on sale,” a statement that frankly wins no points with me. After all, we’ve all read that claim countless times from self-proclaimed “experts.”
This one, though, made me chuckle for an entirely different reason: there is no name or company attached to the website. The only “person” quoted in any way on the entire site is “the CEO, who has created the tires for sale website in an attempt to provide consumers around the world with up to date and actionable information on how and where to find the best products and best deals.” (Exact quote)
The CEO also offered this gem: “If you manage to buy cheap tires on sale, you will be saving a considerable sum of money.” (Ditto)
The only brands specifically mentioned on the site were Goodyear and Mickey Thompson. Nothing wrong with that, though it seems to lack a certain level of, say, variety. And a certain level of authenticity. To wit (and this, again, is an exact quote, miscues and all):
“However, was quick to point out that before one can realised such savings, one has to first follow a protocol that requires certain basic precautions be taken. If not, then one could end up either paying much more or compromising one’s standard of safety.
“Among the places an automobile owner can go to purchase cheaply priced but quality tires, according to the founder especially if money is no problem, is to go directly go to any showroom or website reputed tire companies like, Goodyear and Mickey Thompson.
“’Searching for tires on sale also required your investment in time to make an effective search,’ he said, as while recommending the following common places where quality and reliable tires on sale can be found.”
“’Finally, you should get only those tires for sale behind which the manufacturers will stand solidly,’ said [insert your name], whose site also covers the categories: Cheap Tires for Sale, Goodyear Tire Stores, Mickey Thompson Tires, and Rims for Sale.”
Now, before the phone calls and emails start, I am going to go out on a limb here and state that neither Goodyear nor Cooper/Mickey Thompson had anything to do with this site. So save your Interwebs.
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That’s it for me for 2011. The holidays are here and as my present to all of you, I am packing up my blathering for a few weeks. Planning to spend time with friends and family and food (sorry doc!) and fun, which I hope all of you also focus on during this season. Thanks for reading, and for being an important part of the Tire Review family.
No doubt 2011 was a tough year for many of us in the industry, and we all hope the new year will bring more relief for our economy and, by extension, our businesses. And we hope the disasters and devastations that dotted the calendar will take the year off and spare peoples around the globe.
Here’s hoping for the best for you and yours in 2012! Happy Holidays.
