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Eversheds comment: Peugeot Citroen recall highlights China’s growing focus on consumer safety

  • United Kingdom

    16-05-2014

    Commenting on the latest news that Peugeot China has recalled over 160,000 vehicles Peter Shervington, Product Liability Expert at law firm Eversheds, says:

    “For car-makers, undertaking a consumer recall is a major step wherever it takes place – the direct costs of contacting vehicle owners, disseminating information through dealer networks and informing regulatory authorities are substantial. In the long run there can be a significant impact on brand image, morale and investor confidence.

    “The regulation of automotive product safety in China has been developing at an impressive speed over the past few years as the authorities seek to keep pace with increasing consumer wealth and a huge expansion in the number of vehicles purchased. The figures speak for themselves; 5.3 million vehicles were recalled in China in 2013, an increase of 65.5% on the previous year.

    “In the scale of auto-recalls this announcement from Peugeot’s Chinese venture is not earth shattering. Nevertheless, it is a timely reminder that China is no soft touch when it comes to product safety. Peugeot Citroen will want to be seen to act quickly and decisively to protect consumer safety and be working hard to minimise the impact on their brand in a crucial market.”

    Peter Shervington, Principal Associate

    This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full terms and conditions on our website.

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