Trends, patterns and emerging issues of Chinese automobile recalls

Shi Wen1,2, Liu Yucui2, Li Xuejiao3, Fang Siqi1, Chen Haiying1

Science Research Management ›› 2017, Vol. 38 ›› Issue (5) : 87-97.

Science Research Management ›› 2017, Vol. 38 ›› Issue (5) : 87-97.

Trends, patterns and emerging issues of Chinese automobile recalls

  • Shi Wen1,2, Liu Yucui2, Li Xuejiao3, Fang Siqi1, Chen Haiying1
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Abstract

Under new conditions of globalization, one essential part to successfully implement “Going Global” strategy is the development of vehicle recalls. With the panel data of U.S.’s 47-years, China’s 10-years and top 20 automobile manufacturers’ in China, this paper, using the paired comparison analysis, explores the gap of recall issues between these two countries who occupy the first two places of automobile sales in the world. Also, we devolve into the root causes of the gap. The results indicate that despite close sales of two countries in last decade, China lag far behind U.S. in vehicle recalls. Devoid of passive recalls initiated by government is the primary cause of the gap. Although China and U.S. have parallel volume of vehicles involved in a certain recall event, there is a substantial difference in recall numbers. Joint-venture auto makers are more likely to announce a recall than self-owner ones. Although there is no difference in recall attitude among joint-venture manufacturers, their corresponding brands in developed countries have more recalls than in China.

Key words

vehicle recalls / positive recalls / passive recalls / self-owned brand / joint-venture brand

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Shi Wen1,2, Liu Yucui2, Li Xuejiao3, Fang Siqi1, Chen Haiying1. Trends, patterns and emerging issues of Chinese automobile recalls[J]. Science Research Management. 2017, 38(5): 87-97

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