China consumer show targets Volkswagen, Nissan, Mercedes (updated)

Xiabuxiabu Catering Management (China) Holdings

16/03/2015 05:03

* 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 
 
 (Adds Mercedes Benz statement, recasts lead paragraph) 
    By Adam Jourdan and Sue-Lin Wong 
    SHANGHAI, March 15 (Reuters) - Car makers, including 
Volkswagen AG  VOWG_p.DE , Nissan Motor Co  7201.T  and Daimler 
AG's  DAIGn.DE  Mercedes Benz, said they are probing allegations 
aired late on Sunday by Chinese state TV that the firms oversold 
repairs and spare parts to drivers. 
    The annual "3.15" consumer rights day investigative special, 
similar to 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. 
    Mercedes and Jaguar Land Rover are already being probed by 
China for possible anti-competitive behaviour. The Chinese 
venture of German car maker Volkswagen was fined last year for 
price-fixing.  ID:nL3N0RC2TF  
    Volkswagen, a target two years ago of the China Central 
Television (CCTV) show, was also criticised in an article ahead 
of the programme 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 regulation of its 
service teams, according to a statement on its official 
microblog. 
    Mercedes Benz said it would launch a probe and urged dealers 
to reform their behaviour. Land Rover apologised to its 
customers on its official microblog and said it was working to 
resolve the issue. 
 
    PIG'S 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 channels.  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. 
 
 (Additional reporting by Jake Spring in BEIJING; Editing by 
Ruth Pitchford and Muralikumar Anantharaman) 
 ((adam.jourdan@thomsonreuters.com)(+86 21 6104 1778)(Reuters 
Messaging: adam.jourdan.thomsonreuters.com@reuters.net)) 
 
Keywords: CHINA CONSUMERS/