Employees work at the production line inside the Chery Jaguar Land Rover plant before the plant's opening ceremony in Changshu, Jiangsu Province. (Photo : REUTERS)
China Central Television (CCTV) in a national news broadcast accused foreign carmakers Jaguar Land Rover, Volkswagen AG, Daimler AG, VW and Nissan Motor Co. for passing on defective products and over-pricing.
The government-controlled television broadcaster alleged that Jaguar Land Rover is selling some models with faulty gearboxes and provides poor service related to transmission repairs. It added that Volkswagen AG refused to acknowledge quality defects on the rear axle of its Sagitar sedan.
It also took aim at dealerships for Daimler AG's Mercedes-Benz, VW and Nissan Motor Co. for overcharging at some of their service centers in China, at times by as much as double for car repair, and for billing customers for unnecessary services.
The state broadcaster's allegations come on World Consumer Rights Day, which has become an annual tradition meant to champion stronger consumer power.
Nonetheless, no Chinese carmakers were put under CCTV's microscope, reinforcing the perception that its Consumer Day program tends to pay more attention to foreign brands.
The March 15 broadcast, already on its 25th year, is feared by foreign companies who feel they will be targeted for becoming too successful in China at the expense of domestic rivals.
Qiao Mu, a journalism professor at Beijing Foreign Studies University, lamented that the March 15 broadcast "panders to a certain type of nationalism as it tends to target foreign companies and rarely touches large state groups or monopolies."
CCTV's criticisms were able to elicit apologies from all the carmakers mentioned.
"Land Rover China places great importance on the issues raised in CCTV's broadcast," the company said.
The U.K. company noted that it was aware of the problems surrounding Range Rover Evoques and had been working with affected customers.
Nissan said that it is launching an investigation into CCTV's allegations.
Meanwhile, a spokeswoman for VW said that the company is monitoring its dealers and making efforts to improve customers' experience.
A spokesman for Daimler said that the company is investigating the matter and is concerned about consumer rights and "irresponsible behavior" toward the Mercedes-Benz brand.
