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I. Safety and Recall Scandals:
(from the wire service of the official home page of the Korean government)
Recalls Haunt Car Makers July 25, 2002 9:42:23
Automobile recalls has been on the rise mainly because of the increased consumer assertion of their rights and defects becoming common in complicated modern cars.
But automakers still prefer to deny problems with their products, fearing acknowledgement of poor quality might taint their image.
According to the Ministry of Construction and Transportation (MOCT), recalls have been on a steady rise since their introduction in 1992.
The number of cases in 1997 was seven, recalling 32,510 units in 1997, but it has jumped by a factor of five to 39 cases or 566,332 vehicles recalled last year. This year, 18 models have already been called back to dealerships under recall, a total of 263,265 vehicles.
The rising trend is partly due to a change in consumer attitudes toward poor quality products. The Korea Consumer Protection Board (CPB) last year received 1,291 complaints, up from 1,110 in 1999.
And it isn't just a few disgruntled customers who have gone so far to establish anti websites highlighting the deficiencies of the vehicles, or even going so far as to hold rallies in front of an automaker's headquarters.
"Many customers suffer recurring vehicle malfunctions without even receiving the minimum of after-sales service from the manufacturers. We have made efforts to sort out such problems on our own," said Yang In-chol, Webmaster of one of the vehicle anti-websites, www. anticarens.co.kr.
Members of the site held a rally in April last year in front of an automakers' headquarters in southern Seoul.
Other sites like www. anticar.co.kr, www. antitrajet.co.kr and www. antikia.systek.co.kr have sprung up online as an outlet for venting consumer anger.
The initiative of consumers has prodded local automakers to carry out their responsibility as manufacturers. Hyundai and Kia have announced recalls for their Trajet and Carens models respectively only as a result of complaints listed on Internet bulletin boards.
The rising number of customer-run consumer watchdogs have freed only a few models from the revision process, and for example, Kia's sport utility vehicle Carnival has gone through the repair for as many as seven times.
The growingly complexity of automobiles, the incorporation of electronic modules, and the rush to market have all led to more malfunctions on the street. Despite growing numbers of angry customers, automakers only scratch their heads as if they don't even know what is wrong with their vehicles.
Attempts by manufacturers to avoid the responsibility of producing unreliable vehicles by trying to pass the blame onto the purchaser is the most often cited excuse for failing to rectify manufacturing shortcomings.
But behind their negligence of duty are mostly the carmakers' valid concerns that a recall highlights faults in quality and the subsequent damage to corporate image.
Corporate fears often lead to cover-ups, whether intentional or not.
Last year, Ssangyong Motors recalled its Musso model only after the vehicle was first recalled in England. The LPG-fueled Carens model was only recalled to repair centers after a long dispute over its faults.
In other cases, carmakers sneakily avoid publicity by only directly contacting drivers of the defective vehicles.
Kia Motors was attempting to slowly replace the defective radiator fan of its LPG Optima models at after-sales centers on the sly from last March until the MOCT publicly ordered the recall.
Hyundai Motors, of which its new EF Sonata model has similar problem, also delayed announcement of a recall, threatening lives on the road, until the MOCT blew whistle on it. Then the country's biggest automaker was, "It is up to the government to decide whether or not to announce the recall. We are not obliged to open our mouth."
According to the CPB, the number of unpublished recalls performed after request from the customer rights watchdog totaled 28 cases for 850,000 units.
It estimates that unofficial recalls, including minor repairs, could reach 3,000 cases per year.
"The competitive introduction of new models has made carmakers come out with half-baked products. The duopoly in the market means the local market is supply oriented rather than geared toward consumers," said Kim Jong-hoon of the CPB.
He emphasized that the automakers should be required to develop durable models as a matter of course, and when necessary, they must not hesitate in disclosing defects in their products, as there is not a "perfect" car in the world.
View the article at:
http://www.korea.net/menu/government/newscontent.asp?Number=20020725001
II. Engine Power Inflation Scandal:
1- From daily Korea Times:
Carmakers Face Probe for False Labeling Charges
The Construction and Transportation Ministry has ordered the country's three major automakers to correct their alleged practice of falsely labeling the engine outputs of their car products.
The ministry will file complaints with the Fair Trade Commission over the false labeling.
A report by the ministry showed that Hyundai Motor Co. labeled the 2,000- cc EF Sonata at 147 horsepower, 10.5 percent higher than its actual 133 hp.
Daewoo Motor Co. raised the engine power of Magnus, with an engine displacement of 2,000 cc, to 148 hp, 13 percent higher than its actual capacity of 130 hp.
Kia Motors Co. also falsely put the engine power of its Credos, which also has an engine displacement of 2,000 cc, at 146 hp, 15.8 percent higher than its 126-hp.
The automakers released the false information to the market upon the cars' release, the ministry said.
The ministry is planning to expand the investigation to other carmakers, while ordering the three car manufacturers to correct the false information by the end of this month.
ë ¥ê° 2001/02/02 17:17
View the article at:
www.hankooki.com/times/200102/t20010202171717401118.htm
2- From daily Chosun
05/20(Sun)19:38
Local Automakers Inflate HP Figures: Ministry
The nation's three carmakers have been involved in inflating power figures for about 41 models in their sales literature and, following a correction order by the government authority in charge recently, have issued new numbers for many models.
According to the Ministry of Construction and Transportation (MOCT) Sunday, Hyundai Motor, for instance, indicated 108 horse power for its passenger model Avante XD (DOHC) in sales literature, but the firm corrected it to 102 hp recently, following the ministry's intervention.
Also adjusted downward were figures for Hyundai's EF Sonata, (G4JP)'s 147 hp to 133 hp.
The hp for Daewoo's Nubira was downgraded to 101 hp from 107 hp and that of Kia's Optima was also lowered to 133 hp from 149 hp.
A total of 15 models of Hyundai have been subject to the correction order, followed by 19 models of Kia and seven models of Daewoo.
(Choi Jang-won, jwchoi@chosun.com )
View article at:
www.chosun.com/w21data/html/news/200105/200105200342.html
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