China consumer show targets Volkswagen, Nissan

Xiabuxiabu Catering Management (China) Holdings

15/03/2015 16:38

* Chinese annual TV consumer expose criticises VW and Nissan 
    * Daimler's Mercedes and Jaguar Land Rover also hit 
    * Annual expose show can dent reputation and sales 
 
    By Adam Jourdan and Sue-Lin Wong 
    SHANGHAI, March 15 (Reuters) - Carmakers including 
Volkswagen AG  VOWG_p.DE , Nissan Motor Co Ltd  7201.T  and 
Daimler AG  DAIGn.DE  were scrambling late on Sunday after 
China's annual consumer rights day TV show said the firms 
oversold repairs and spare parts to drivers. 
    The annual "3.15" investigative special on China Central 
Television (CCTV), similar to the CBS network's "60 Minutes" in 
the United States, also criticised Jaguar Land Rover  TAMOJL.UL  
for gearbox problems in some cars. 
    China is the world's top auto market, and media criticism  
can dent reputations and drag on sales. iPhone maker Apple Inc 
 AAPL.O  made a rare apology in 2013 after criticism on the show 
of its after-sales service. 
    German carmaker Volkswagen, a target two years ago, was 
further criticised in an article before the show for its 
handling of a recall of its Sagitar model car. 
    "We have paid close attention to CCTV reporting ... and we 
sincerely apologise for any inconvenience caused to our 
customers," said Volkswagen China spokeswoman Larissa Braun.   
    Nissan's China joint venture said it would set up a team to 
investigate the allegations and strengthen the regulation of its 
service teams, according to a statement on its official 
microblog. Daimler declined immediate comment. 
    Land Rover apologised to its customers on its official 
microblog and said it was working to resolve the issue. 
    Multinational firms and their public relations teams often 
scramble to respond to the allegations after seeing their 
company named and shamed for the first time on the night itself. 
     
    PIG BLOOD 
    The popular show, which singled out camera maker Nikon Corp 
 7731.T  last year, also said fast food chain Xiabuxiabu 
 0520.HK  had used pig's blood as a cheaper substitute for 
duck's blood - a popular hotpot delicacy. 
    The firm said in a statement it would investigate the 
allegations and suspend sales of duck blood products. 
    Fast-food outlet McDonald's Corp  MCD.N , supermarket chain 
Carrefour SA  CARR.PA  and home products firm Procter & Gamble 
Co  PG.N  have also previously come under the show's spotlight. 
    Some firms have pushed out cut-price deals to consumers in 
the run-up the event to win over consumers in case they are 
targeted on the show.  ID:nL3N0JO1O4  
    CCTV itself has come under fire in China over the last 
couple of years, with some consumers rushing to defend its 
targets or simply changing channel. ID:nL4N0WE3Z9  
    But marketing experts said that without damage control the 
impact of such shows in China could damage companies severely. 
    "The 3.15 show still packs a punch to the firms targeted, 
and a poor or flippant response from a targeted company can 
evoke consumer outrage," said James Feldkamp, chief executive 
officer of consumer watchdog MingJian. 
 
 (Reporting by Adam Jourdan and Sue-Lin Wong; Additional 
reporting by Jake Spring in BEIJING; Editing by Ruth Pitchford) 
 ((adam.jourdan@thomsonreuters.com)(+86 21 6104 1778)(Reuters 
Messaging: adam.jourdan.thomsonreuters.com@reuters.net)) 
 
Keywords: CHINA CONSUMERS/