"National Regulation On Recall Of Defective Vehicles And Products" And Implementation In Shanghai Automotive Industry Corporation (SAIC)

On 12th March, 2004, "Regulation on Recall of Defective Vehicles and Products" (Nation's Decree No. 60) was issued jointly by General Administration of Quality Supervision, Inspection and Quarantine, General Administration of Customs, National Development and Reform Commission, Ministry of Commerce. The regulation was coming into effect on 1st October 2004. It marks that the management of the defective vehicles takes the key step in China.Being one of the top 3 car manufacturers in China, SAIC should learn how to analysis the nation's regulations and request thoroughly, how to clear the role in the competitive environment, how to implement the recall management under the company's multi-car brands and car models strategy, how to improve the company's management level, including project management, quality control, risk control. This paper will try to find the solutions by establishing the recall system.The main purpose of this paper is trying to compare the "Regulation on Recall of Defective Vehicles and product" and the related foreign regulations, analysis the same and different methods, employing the advanced ideas and experience which used by the multi-national car manufacturers, establish the "SAIC Regulations on Recall of Defective Vehicles and Products", to form a recall system with SAIC character which including the management modes and applicable procedures. Meanwhile, by establishing the suitable organizations and structure, the SAIC and her sub-branches, especially the car assembly plants will benefit from the recall system (including warning system, customers info system and traceability system), and facing the challenges of recall actively.The establishment of the recall system will influence all the aspects of the company operation, and re-new the comprehensive management concepts, including product safety design, project management, risk control, quality control, etc. Based on the crisis control and risk management, this paper will discuss the establishment the recall system of SAIC, and the advantage which the recall system will bring, equipping with the prevention method to strengthen the products development and process quality control, and quick feedback in the market explorer ability. As told in the paper, "SAIC Regulations on Recall of Defective Vehicles and Products" was issued formally and implemented, it is the guide document of the recall works in SAIC, SAIC and related companies have already established the standardized recall system, based on the product development, manufacturing, quality control, service system, to accomplish traceability, warning, customer information of the modern vehicles and products recall system, increasing the company's competition ability in the automotive industry.