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Crashing wagons
Published in The Egyptian Gazette on 16 - 02 - 2010

Three global heavyweight automakers have announced recalls over the past few weeks. Japan's Toyota and Honda and Germany's Volkswagen are facing hard times regarding safety defects in their state-of-the-art brands.
In Egypt, the Consumer Protection Agency (CPA), a governmental institution, made local headlines, claiming there was a gearbox problem in Toyota Corolla 2008 and 2009 roaming the streets of the most populous Arab country. But it seems the bubble burst, and Corolla's gearbox was safe and sound. Yet, the debate over the safety of cars and the whole automotive industry hasn't taken a break whether locally or globally.
Toyota is under fire in the US for its handling of massive recalls affecting about eight million vehicles worldwide ��" more than its entire 2009 global sales of 7.8 million vehicles ��" due to accelerator trouble. The Japanese auto giant is facing a two-billion-dollar bill from massive safety recalls.
Two other giant automakers were also in the doldrums. Honda recalled more than 400,000 vehicles this month to fix airbags that could "explode and spray out potentially deadly metal shards".
Volkswagen also disclosed on February 11 that it was recalling nearly 200,000 vehicles in Brazil due to a problem with the rear wheels that could cause them to seize or fall off.
While local agents were following news of recalls, the CPA shocked the market last week by demanding a recall of 6,500 cars of Toyota models produced in 2008 and 2009. Many traders described the move as "overrated and a means to get media attention".
"The demand is unjustifiable and not based on any grounds. The gearbox issue is nothing but a bubble in the air," Maged el-Khouly, a Cairo-based auto agent, told the Egyptian Mail in an interview.
"Toyota is the No. 2 car in Egypt in terms of sales. Until now there are three new models of new Toyota: Corolla, Camry and RAV 4. Despite news about defects, sales of Toyota are the same as usual," el-Khouly said.
Toyota took 7.2 per cent of market share in Egypt last year after South Korean Hyundai, which accounted for 20.3 per cent of passenger cars, according to a report by the country's Automotive Marketing Information Council (AMIC).
Truck and passenger car sales totalled 205,521, of which 113,182 were imported, last year, AMIC said in the report.
Chevrolet topped sales 2009 for the second year in a row with 24.9 per cent of market share. Sales of trucks stood at 33,446, while vans and buses hit 13,149 last year, according to AMIC.
"Customers now ask if Toyota cars at local agencies are imported from the US or Japan. They also ask about the vehicle's acceleration and braking systems. These questions are a new phenomenon in the Egyptian market," el-Khouly added.
"There's no bargaining over safety, but the CPA overreacted," he said.
"The move was in good faith. Safety on the road is a must. But there should 've been a technical report prepared by an independent committee of auto engineers and university professors to give grounds to these complaints," he argued.
"Japanese cars aren't at stake. On the contrary, recalls would boost Japan's auto industry as they would send a message to the whole world that Japanese automakers care about their customers' safety after sale," he said.
But the wind of change is looming from a global perspective, Hyundai sales have been on the rise, and it is argued that it will boost its presence in the wake of Toyota's predicament.
Early this month, Hyundai Motor said its US sales jumped by almost a quarter in January.
Hyundai Motor America said it sold 30,503 vehicles in January, up 24 per cent from a year earlier. It added the new figure accounted for 4.7 per cent of the total US auto market in January.
"On the average, people change their cars every 10-15 years here. They would be still looking for quality. Japan is still and will be the world's No. 1 car exporter in the coming years despite Toyota's recalls," he added.
More than 1,000 owners of Toyota vehicles in the US have reported sudden vehicle acceleration since 2001, and at least 19 people might have been killed in subsequent crashes into trees, parked cars and other obstacles.
"The auto industry requires a highly-scrutinised quality control. Once an accident takes place, three factors should be checked: the road, the driver and the vehicle. Any automaker that fails to secure its products must pay the price," Mahmoud Faysal, an auto engineer, explained.
"Personally, I've never heard about any gearbox problems with Toyota Corolla in Egypt. I read about complaints in the local press. Was there a technical report?" Faysal wondered.
"Thousands of accidents take place in Egypt annually. No one speaks about factory gearbox problems. Maintenance is a problem in Egypt. Bad servicing and fake spare parts add insult to injury," he added.
Death toll hit 7,000 on Egyptian roads last year, according to data released by the Ministry of Transport. Reckless driving and ill-serviced vehicles are blamed for around 96 per cent of road accidents in Egypt.


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