The Chinese government has released new regulations for vehicle recalls. According to Automotive News China, starting next year, automakers who fail to recall vehicles in a timely manner can expect to face fines between $80,000 and $160,000. That may be a small sum for an automaker, but the new regulations also allow the government to levy a fine of between one- to ten-percent of the total sales value of the recalled units.

What's more, automakers could face revocation of their production licenses if they knowingly conceal defects or refuse to stop selling faulty vehicles. Currently, automakers in China operate under guidelines enacted some six years ago. The outgoing standards only impose a tiny fine of between $1,600 and $4,800 for failing to recall vehicles. Between 2004 and 2011, manufacturers in the country recalled some 6.2 million units.


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  • 19 Comments
      The Wasp
      • 2 Years Ago
      To those who think Chinese automakers will never catch up, take note. This is a meaningful step towards being competitive in/allowed into western markets.
        ChrisH
        • 2 Years Ago
        @The Wasp
        does the article restrict to Chinese automakers only? It is not specific, in other words it can be leveraged to get what they want from anyone building cars there
          The Wasp
          • 2 Years Ago
          @ChrisH
          Interesting point -- it seems fair that any company manufacturing or selling there should have to follow the same rules.
      behard2
      • 2 Years Ago
      That is one happy looking car.
        imoore
        • 2 Years Ago
        @behard2
        You'll be happy too if someone (or something) was hugging your bottom.
      Shiftright
      • 2 Years Ago
      The next month, the entire Chinese car industry collapsed (as their cars have)
      Jesus!
      • 2 Years Ago
      If the front of that red car is not a knockoff of a 96 Ford Taurus with bulgier eyes I dont know what is!
      dukeisduke
      • 2 Years Ago
      The cute smile is an attempt to help you forget you're driving a deathtrap.
      BKdroid
      • 2 Years Ago
      I have a feeling that these higher "optional" fines will be much more common on imports than the Government protected/controlled domestics. The wording of this makes it sound like they have the choice to fine anywhere from $80k to 10% of sales value depending on how they view the recall issue. This leaves a whole lot of room to fine a Chinese carmaker $80k so they can say they're not playing favorites, and then charge someone else several million.
      Hello.
      • 2 Years Ago
      This car is a Chery Riich M1
        NightFlight
        • 2 Years Ago
        @Hello.
        Certainly does look Riich. The double IIs make it more prestigious. /sarcasm
      superchan7
      • 2 Years Ago
      China has nice and strict rules and regulations, but enforcement is a different story.
      Randy915
      • 2 Years Ago
      Good for them. The key is to save lives.
        IOMTT
        • 2 Years Ago
        @Randy915
        The irony of your statement is amazing considering it is China we are talking about.
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