INTERNATIONAL carmakers such as Volkswagen AG, Nissan Motor Co. and Daimler AG’s Mercedes-Benz were scrambling late Sunday after China’s annual consumer rights day TV show said the firms oversold repairs and spare parts to drivers.

    A number of car dealerships operating under Dongfeng Nissan Passenger Vehicle Co, Shanghai Volkswagen and Mercedes-Benz in Beijing, Tianjin, Shanghai and Hangzhou have been charging consumers thousands of yuan for a simple problem that could be solved by merely plugging in the induction coil inside the ignition system. In one case, a Mercedes-Benz dealer in Tianjin charged a consumer more than 10,000 yuan (US$1,600) to fix the problem.

    The annual “3.15” investigative special on China Central Television (CCTV), similar to the CBS network’s “60 Minutes” in the United States, also criticized Jaguar Land Rover for gearbox problems in some cars.

    Land Rover was accused of adopting faulty gearboxes in its Evoque cars in China. Owners of Evoque cars throughout China encountered malfunctions such as sudden stops while driving and faulty reverse gears, which started happening again soon after 4S stores changed the defective gearboxes with new ones for free, according to a consumer protection TV show.

    The maintenance men at different Land Rover 4S stores could not tell what exactly caused the gearbox defects. The car owners were sometimes required to upgrade the relative software, which was apparently good for nothing.

    The show revealed that Land Rover (China) denied the gearbox problems and passed the buck to Chinese consumers, saying “they drove too fast.”

    However, CCTV’s investigation results showed that Land Rover had discovered the problem long ago and issued confidential notices only to the company’s engineers.

    Land Rover so far has not announced any recall of Evoque cars in China, and on its website still highlighted the brand’s professional spirit and high quality. But what if any serious accidents or malfunctions occur appear after the car’s warranty expires, asked the show.

    The average price for an Evoque car in China is over US$100,000, but driving them has become “dangerous and horrible.” Volkswagen launched recalls after its faulty gearbox scandal was exposed in 2013, according to the TV show.

    Qiu Baochang, the legal head of the China Consumer Association, who attended the show, said all automobiles should be recalled when problems happen in the same batch or with the same model. Law enforcement departments should inform involved companies and compel recalls when no timely recalls are announced, he suggested.

    Responses

    China is the world’s top auto market, and media criticism can dent reputations and drag down sales. iPhone maker Apple Inc. made a rare apology in 2013 after criticism on the show of its after-sales service.

    Mercedes and Jaguar Land Rover are already being probed by the Chinese Government for possible anti-competitive behavior. The Chinese branch of German carmaker Volkswagen was fined last year for price-fixing.

    Volkswagen itself, a target two years ago, was further criticized in an article before the show for its handling of a recall of its Sagitar model car.

    “We have paid close attention to CCTV reporting ... and we sincerely apologize for any inconvenience caused to our customers,” said Volkswagen China spokesperson Larissa Braun.

    Nissan’s China joint venture said it would set up a team to investigate the allegations and strengthen the regulation of its service teams, according to a statement on its official microblog. Daimler declined immediate comment.

    Mercedes-Benz said it would launch a probe and urged dealers to reform their behavior. Land Rover apologized to its customers on its official microblog and said it was working to resolve the issue.

    Multinational firms and their public relations teams often scramble to respond to the allegations after seeing their company named and shamed for the first time on the night itself.

    Food safety

    The popular show, which singled out camera maker Nikon Corp. last year, also said fast-food chain Xiabuxiabu had used pig’s blood as a cheaper substitute for duck’s blood — a popular hotpot delicacy.

    The firm said in a statement it would investigate the allegations and suspend sales of duck blood products.

    Fast-food outlet McDonald’s Corp., supermarket chain Carrefour SA and home products firm Procter & Gamble Co. have also previously come under the show’s spotlight.

    CCTV itself has come under fire in China over the last couple of years, with some consumers rushing to defend its targets or simply changing the channel.

    But marketing experts said that without damage control, the impact of such shows in China could damage companies severely.

    “The 3.15 show still packs a punch to the firms targeted, and a poor or flippant response from a targeted company can evoke consumer outrage,” said James Feldkamp, chief executive officer of consumer watchdog MingJian.

    The program, co-produced by CCTV and various State departments — including the General Administration of Quality Supervision, Inspection and Quarantine and the State Administration of Industry and Commerce — exposed business misconduct and defended consumers’ rights. It has been broadcast annually March 15, World Consumer Rights Day, since 1991.

    (SD-Agencies)