On May 15, 2011, Kumho Tire recalled the full moon, and Lee Han-hyun, chairman of Kumho Tire (China), faced the media for the first time.
However, in the face of continued opposition from domestic consumers, Li Hanmin still insisted that "all test reports so far have shown that Kumho's products are qualified." Lee claimed that he would return glue if not used according to the company's standards. Conduct investigations but stressed that "We don't have any flaws in product quality."
Regardless of Li's justification, in fact, he and his supporting manufacturers must recall 320,000 tires in question in China. As of May 11th, 34,000 have been replaced and the completion rate is about 10%. In addition, Li also said that 31,000 free-to-be-replaced tires were not used in the recall batch.
Li Hanxi said that the Tianjin plant was still in the stage of suspending production and rectification due to the cancellation of the 3C certification, but it did not need the 3C certification to export overseas and had resumed production. If the recall progresses smoothly, the Kumho Tianjin plant that has been revoked by the 3C certification will return to normal after three months. At present, the eight plants of Kumho Tire's global operations are adjusting the standards for returning rubber.
There is nothing wrong with returning glue, wrong add in violation?
Reporter: According to the information provided by you, all the test reports so far have shown that Kumho's products are qualified. Can you explain this? Including some of the products we previously said that violated the production process.
Li Hanxi: On the second day of the CCTV report, we immediately stopped all production at the Tianjin plant. Then on the same day, the relevant agencies of the national quality inspection department made some tests on this side.
We said that the CCTV report was incorrect and that it was returned to the rubber block. The National Quality Inspection Department came to us on that day and gave a positive opinion on the return of plastic. It was a normal glue and there were no problems.
What is more clear now is that we do not have any flaws in product quality. After the communication, the company decided, but if no return glue is used according to the company's standards, we will check it out. After we find out, we will make a unified recall for these products.
Reporter: After 315 exposure incidents, how big is the impact on Kumho Tire and the market?
Li Hanxi: In fact, the first and greatest damage to this issue was our customers. They were psychologically greatly damaged. Until now, I feel that for Chinese consumers, it may be that Kumho will still be a moral paradox or a very bad corporate image. I still think so. I hope that consumers can feel Kumho is still a relatively good company, but there are some deficiencies in this time period.
In addition, from the perspective of dealers, the financial impact on them is also very large. For enterprises, the Tianjin factory has more than 2,000 employees and they stopped for over 40 days. It is also a great loss to the company.
Reporter: What is the reason that caused such a thing to happen? In fact, this issue has been bulging since 2008.
Li Hanxi: Kumho Tire probably has more than 6,000 employees in China. The first thing to change now is communication. Perhaps we are not very open-minded in accepting the very sincere advice that our employees have made to the company. Therefore, such a big mistake has occurred.
Reporter: The percentage of rubber added to this time is not to reduce costs?
Li Hanhao: The price of synthetic rubber in the past two years is indeed very high, we will reflect on the cost control.
In addition, the return adhesive is actually the same glue on the production line. No tire manufacturer has thrown the return glue, and the rest of the scrap will be reused. The key is to use it according to strict standards.
We, Kumho, have eight factories around the world, and we are now making simultaneous improvements and reorganizations of the proportion of returned rubber. I think that after other tire companies passed this incident, they would like us to re-adjust this standard.
The supply contract is only re-signed, and there is no fundamental change?
Reporter: This time, the recalled product range is only for the Tianjin factory, or for all Kumho companies in China?
Li Hanxi: First of all, the Tianjin plant was shut down. After the stop, the quality inspection department made a series of inspections on Kumho.
There were also two surprise inspections at the Nanjing Plant and the Chengdu Plant. The General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) made a judgement on the product of this block.
The Tianjin factory does not need 3C certification for export, and the export products have been resumed since April 26th. Before export, they also communicated with QC. After obtaining the license from them, they began to do so.
Reporter: On April 2nd, Kumho began the first round of recalls. The General Administration of Quality Supervision, Inspection and Quarantine clarified that the main responsibility of the recall was Kumho Company. Subsequently, the General Administration of Quality Supervision, Inspection and Quarantine announced the second round of recall announcement on April 11, but this The main body responsible for the recall has become three automobile manufacturers: Beijing Hyundai, Dongfeng Yueda Kia, and Great Wall Motor. In foreign countries, is this tire product completely recalled by the component manufacturers or through the channel of the automaker?
Li Hanxi: The car is assembled from tens of thousands of parts. The tire is the only car component that is not used by car manufacturers. However, tires are a product that is directly linked to safety, and it is of vital importance that tire manufacturers usually make recalls spontaneously or when there are indications. This is a common practice in the world.
In China, there is no precedent for the recall of this tire, so when it comes to tire recalls, the time is slightly delayed. In the case of the United States, all recalls are basically a quality inspection conducted in units of three months. If 50% of the recalls can be recalled within three months, they are considered to be in place.
The recall by the car manufacturer and the tire manufacturer is actually required by the quality inspection department, because the Chinese market is really too big. The recall brought a lot of inconvenience to the car manufacturers, because they want the tire companies to recall themselves. Hanging in the name of the car manufacturer may bring a lot of inconvenience to their business.
Reporter: Now on the side of OEM customers, is there any situation where individual orders are withdrawn?
Li Hanxi: At the beginning of the incident, there was a very rapid change in our order but it was not there at present. Fundamentally speaking, there are problems with re-selling all previous orders. Another problem is that because the Tianjin plant has suspended production and rectification, our supply capacity is still not going up. Therefore, we are now using other plant capacities to make every effort to ensure our supply of vehicle manufacturers. However, there is still a shortage of supply.
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