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Greg Baker / AP Barbie dolls at a department store in Beijing last August. |
A top Mattel executive has personally apologized to China's product safety chief, taking responsibility for most of the problems behind three massive, highly-publicized toy recalls this summer. Those recalls contributed to a growing perception that China isn't able to make goods that are both inexpensive and still meet safety standards.
Meeting in Beijing a few hours ago, the toy company's executive vice president for worldwide operations told Li Changjiang, "Mattel takes full responsibility for these recalls and apologizes personally to you, the Chinese people, and all of our customers who received the toys."
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Is Mattel worried that China could be the Grinch of Holiday 2007? |
Mattel now acknowledges that "the vast majority of those products that were recalled were the result of a design flaw in Mattel's design, not through a manufacturing flaw in China's manufacturers." The flaw for most of the Mattel toys (17.4 million pieces) involved small magnets that could be swallowed.
This isn't the only case where design gets the blame. A new study suggests U.S. design flaws have been responsible for most Chinese toy recalls over the last 20 years. And just today, Simplicity voluntarily recalled one million cribs made in China, after at least three children died and many more were entrapped. The problem isn't shoddy manufacturing. The Consumer Product Safety Commission says in its news release that the problems are the result of both "hardware and crib design."
A smaller number of Mattel toys (2.2 million pieces) were recalled due to lead-paint concerns. The company now says those recalls were "overly inclusive" and included some toys that met U.S. standards. The company, however, does say Chinese manufacturers do bear some responsibility for the lead-paint problem "because a minority of manufacturers did not follow the company's rules."
Is Mattel taking the heat because it's wrong, or because it's worried about Chinese retaliation as the holiday season approaches? Without Chinese cooperation, Mattel might not have a lot of toys to sell this December.
| The Heat asks: Should Mattel have apologized to China for the toy recalls? |
CNBC Video Clip: Mattel's "Bilingual" Apology reported by CNBC's Hampton Pearson (September 21)
CNBC Video Clip: Mattel Apologizes to China with Robert Dilenschneider and Oppenheimer's Linda Bolton Weiser (September 21)
Reuters on CNBC.com: Mattel Apologizes to China for Toy Recalls (September 21)
CNBC Video Clip: Mattel Steps Up Safety reported by CNBC's Hampton Pearson (September 12)
CNBC Video Clip: Mattel Chairman & CEO Bob Eckert interviewed by CNBC's Erin Burnett (August 14)
CNBC Video Clip: China's Killer Toys reported by CNBC's Bertha Coombs followed by a discussion with Peter Navaro, "The Coming China Wars" author, Economic Strategy Institute President Clyde Prestowitz and CNBC's Melissa Francis (August 2)
AP via New York Times: Mattel Apologizes to China for Recalls (September 21)
Financial Times: Mattel says sorry to China over toy recalls (September 21)
Xinhua: Mattel apologizes to China, pledging to take responsibility for defective toys (September 21)
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Mattel.com A Video clip from Mattel Chairman & CEO Bob Eckert appears on Mattel's web site |
AP via Google: Toy Recalls Put Testing Labs on Overtime (September 20)
Washington Post: Misplaced Anxiety Over Toys? (September 12)
Mattel.com: Response to Sept. 21, 2007 Mattel China Meeting (September 21)
Mattel.com: A Message from Bob Eckert, Mattel Chairman & CEO (September 11)
Mattel.com: Voluntary Safety Recall Facts (September 4)
Douglas McIntyre on BloggingStocks.com: Mattel's (MAT) odd apology to China (September 21)
Peter Navarro's Amazon Blog: Mattel Kow Tows to China (September 21)
Coyote Blog - Dispatches from a Small Business: I Wondered About This - China as Scapegoat (September 21)
Canada.com: Flawed toys not China’s fault alone, report finds (September 6)
Asia-Pacific Foundation of Canada: Toy Recalls - is China the problem? (September 12)
Toy Industry Association: Toys Made in China (Undated)
| Mattel should be applauded for standing up and taking responsibility for the problems that resulted from their own designs. Of course, Chinese manufacturers, like those anywhere, should be held responsible if they cut corners and put out a dangerous product. But let's not fall victim to the protectionist party line that "Made in China" equals "Made to Kill." |
Questions? Comments?
The Heat asks: Should Mattel have apologized to China for the toy recalls?
Email us at:
"The quality issues with Chinese products are more an issue of individual manufacturing and design groups and not generic quality issues with Chinese goods. That does not mean that China does not need to improve its regulatory systems. Having a standard makes it easier for all involved. The final responsibility always lies with the company that orders and sells the product. The Chinese manufacturer was working as a contract manufacturer building a product to a specification. If you put your name on the product you will be held responsible by the consumer for your quality. The contract manufacturer needs to keep a quality reputation if they plan to receive future orders. When Mattel blamed a rogue contract manufacturer for the lead paint problem they were probably correct. When China blamed a incompetent manufacturer for the magnets falling off they were probably correct. Both need to fix their problems and move on." - John D, Miami
"There is no doubt in my mind that China used its influence and power to force Mattel to make this ridiculous apology. Since coming into its own over the last 20 years, China has gone out of its way to prove to the world that it can do whatever it wants with no repercussions. To be fair, the Mattel representative making the apology probably had to choose between his beliefs and his career when deciding to make this absurd statement to China." - Erik W.
"Mattel chose to use Chinese labor (which is often slave labor) to drive down the cost of production and increase profits. The effect has been to the detriment of the middle class work force in the US. This is by design, make no mistake --- corporations are working with the government to erode the standard of living in the Western Hemisphere. When public and private enterprise (read corporations and government) work together the end result is fascism by definition. Mattel should apologize to the American People for their deceit. Furthermore, CNBC should apologize to the American People for allowing Erin Burnett to go on the air and exclaim, 'If China was to remove lead from their toys and poisons from their products, then their cost of production would go up, and the prices of the goods in Wal-Mart would go up. Frankly, right now, China is our best friend.' CNBC’s reporting is shameful. Mattel’s actions are shameful. But then so are the actions of the current Administration." - Terry
"Mattel should apologize to China for overblowing the recalls and giving people around the world such a wrong impression that all the problems are China Made, even when most of the recalls were due to the design problems. So many politicians and media jump on the China bashing wagon. We do see the underlying hatred towards China. Even the latest cribs recall today, if you watch the report by CNBC, viewers will end up with such an impression that the problem is 'China Made.' Why not just tell people the TRUTH? According to what WSJ reported on its website, 'U.S. regulators recalled about one million Chinese-made baby cribs, branded Simplicity and Graco, after the cribs were linked to at least two infant deaths. In both deaths, the cribs were assembled incorrectly by consumers.' CNBC should be ashamed of its China Bashing Bias." - Richie C.
"How pathetic. As an investor I would have zero faith in the ability of Mattel's management. To cave to China because the holiday buying season is near shows the same shortsightedness and lack of attention to detail that caused the manufacturing problems. To tell China to stuff it, the correct response, and to set up manufacturing somewhere else would have increased short term losses but would send the necessary message to China." - Christopher S.
"Mattel should apologize for its lack of quality control and guidance to its Chinese manufacturers. China has more billionaires than the US. They are a huge trading partner and deserve the proper respect and guidance about our many and sometimes frivolous protection laws. They are not the threat economically that our ignorant Politicians and Writers want to project. 99% of the Chinese are dirt poor. They actually live off the land!! CNBC needs to stop putting '2nd Guessers' on the air unless they have actually spent at least a month in China. You know better. You're quickly becoming 'Talk Radio!'" - James T.
"Not just Mattel should apologize to China, the whole U.S. media should apologize to China for bashing China and Chinese-made products without merit. Why should this even be a question at all? Come on, China makes probably 90% of the toys being sold in the U.S. Of course every time there is a problem toy, it's a good chance that it was made in China. But that does not mean any significant amount of products or toys made in China are bad." - J.W.
"You are sloppy in reporting. There are two issues for Mattel; product design and lead paint. You keep going back and forth with statements re what they are apologizing for or should be, taking that Congressional bit (the context of lead paint) and then saying that they are inconsistent and using the bit about the 'design' apology, thus making it one issue. You all are getting as sloppy in reporting (or maybe politically motivated) (or more interested in entertainment/ad revenue) as your sisters (or should I call them brothers), NBC News and MSNBC News. It is depressing for me because I appreciate much of your programming and many of the people presenting, but maybe it is just time to switch and try out your competition as I have done with your 'sisters.'" - Lois B.
"I think the issue is not the context of either one of the apologies as they both carry a bit of political agenda in it. However, maybe we can also look at how suppliers are developed and managed on top of how toys are designed more in depth. Moreover, I am sure we have seen toys being exported from China for many years now. Why is it all of a sudden in 2007 that there is a huge issue? Is there a real economic / business reason(s) for the issue to arise? Inflation over there causes manufacturers to cut corners or Mattel's system and procedure to get the price down?" - Roger T., Canada
"Far too often blame is given to manufacturers, in lieu of the Company that engineers or sets product cost to achieve higher profit margins. Mattel is directly at fault here, and should have made those apologies. When profit overrides safety, those at the top that condone this should suffer the consequences (lawsuits, criminal prosecution, and shame). Our children are our future." - Tiggerooh
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