Study On Defect Motor Product Recall In China

Along with the rapid growth of social economy, the total number of vehicles registered in China by November2011surpassed1.04billion. As the domestic auto production&sales figures crested14,42millions and13.70millions, China became the largest auto production and sales country in the world. Meanwhile frequent occurrence of various accidents caused by defective automobile products inflicted great damage on the safety of consumers’life and property. Victims of the defective automobile products could not acquire valid evidence because of the information asymmetry. Consequently they are easily in disadvantage position.As a new system introduced on safeguarding products quality and safety, defective products recall system could play an important role on safeguard of public life&property safety, regulation of economic order, and purification of market environment. While Chinese defective automobile products recall system is on an early stage of formulation and in need of many improvements. Firstly, the thesis undertakes to define concepts&nature of the defective automobile products recall system and reviews current developments of Chinese defective automobile products recall system. Secondly, the thesis summarizes the problems:low level on legal hierarchy; lack of legal liability; limits on scope of recalls; lack of authoritative, neutral&just inspection agency; lack of regulatory agency; etc. Thirdly, the thesis proposes to establish a comprehensive defective automobile product recall system and promote rapid, healthy development of Chinese automobile industry by taking measures such as stipulating relevant law, completing product defect reorganization mechanism, improving information management system&build-up of departments and personnel, etc.