Kumho Tire faced with reputation risk in China
According to the CCTV report, Kumho Tire supplies tires to the Chinese ventures of General Motors (GM), Volkswagen and Hyundai Motor. Following the CCTV reports, they sought to minimize damages from the tainted brand issue.
The Chinese automakers were quick to deal with the Kumho's brand-damage issue by responding promptly to the CCTV's news reports.
Right after the reports, the Great Wall Motor Company said that it would change all the products into new ones if customers are to clamor for exchanges, adding that it is considering not using Kumho's products down the road.
Dongfeng Motor Corp. said that tires used for manufacturing their cars were all made in Nanjing factory, promising its free-of- charge investigation and exchanges of their built-in tires. FAW-VW Automobile also confirmed that it has used Kumho tires mainly made in Changchun and Nanjing factories.
The Chinese ventures of foreign carmakers showed their knee- jerk reaction against the issue for fear of being blamed for their quality control along with Kumho Tire.
GM's Shanghai venture immediately issued an online statement after the TV report on the defective tires, saying that the Kumho tires used were produced in Nanjing. The company also said that it would help handle consumer complaints or inquiries.
Chery Automobile also told Xinhua that none of the Kumho tires used on some of its vehicles is made at the Tianjin plant.
Volkswagen Shanghai venture said on its website that none of the vehicles manufactured at the venture has ever used Kumho's tires. A spokesman at Hyundai Motor told Xinhua that the company is figuring out the matter.
CONFIDENCE RESTORATION
Market watchers here said that Kumho Tire will inevitably be damaged with their reputation in China, one of the company's growth drivers, stressing that it remains to be seen whether the South Korean tiremaker may restore their confidence from the Chinese consumers and its client companies.
Experts noted any sign of potential damage to Hyundai Motor, one of Kumho's key clients, has not been spotted yet, but Hyundai could shun the reputation risk through contractor shift from Kumho to another tiremaker such as Hankook Tire.
"In terms of original equipment (OE) sector, Kumho Tire has the biggest market share of 23 percent in China, but Kumho's brand will likely be damaged on the CCTV's reports," Park Sang-won, a Seoul-based analyst at Eugene Investment & Securities, told Xinhua.
"Kumho has a strong point in the OE area, which usually improves the performance in the replacement equipment (RE) sector. Kumho could minimize the reputation risk assuming that Kumho smoothly manage relationship with client companies," Park said.
"Kumho reportedly used the residue of original tire, which is totally different from recycled rubber. If the misunderstanding were to be resolved, the issue would have a limited impact on Kumho, but it has already been broadcast in a large way, so the company's brand will likely be damaged," Lee Sang-hyun, an analyst at NH Investment & Securities in Seoul, said by phone.
"Hyundai Motor will not be influenced by the Kumho issue because the South Korean carmaker may shift its tire supplier from Kumho to other companies if public opinion among Chinese consumers deteriorates," he added.
"Kumho decided to apply for voluntary recall, but it remains to be seen how Chinese consumers and its client companies would accept the decision," Yim Eun-young, an analyst at Dongbu Securities, said by phone.
"Kumho is faced with brand risk in China which is the biggest market of the company and is very important for turnaround in earnings of the firm," he added. Enditem
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AUTONET Mobile News:
2010年錦湖輪胎KL61才拿下當地「汽車雜誌」年度最佳均衡越野輪胎的殊榮。
在中國被中國中央電視台所踢爆的韓國錦湖輪胎（KUMHO），其天津廠區未依照標準生產程序，大量使用成本較低、品質欠佳的回收膠料來製造新輪胎，不僅導致錦湖輪胎全球總裁金宗鎬、中國區總裁李漢燮於當地電視節目中向消費者致歉，也讓許多以錦湖輪胎作為OE胎供應廠商的車廠暫時停止裝配錦湖輪胎供新車使用。
錦湖輪胎是JEEP G.Cherokee在中國的標準配胎。
事實上，當中央電視台首度踢爆錦湖輪胎使用不確實原料的情況後，錦湖輪胎還一度否認、並稱該報導內容並非事實。然而後續的負面效應卻開始如雪球般愈滾愈大，在經過對天津廠區的進一步內部調查之後，發現的確存在不按照內部標準進行生產的情事，在追究廠區經營及管理層級的幹部失職責任之後，錦湖輪胎對於案情的態度才出現急轉直下的轉變，並且在電視節目中同時表示將於中國召回所有不符合規定生產的瑕疵產品。
據瞭解這項召回案例是中國地區首見的輪胎召回案例，而且由於錦湖輪胎是全球排名十大之內的輪胎公司，同時也是中國OE胎款中市場佔有率第一的品牌，而天津廠區則是該企業在中國的第二個製造工廠，在南京地區則另有一個生產基地。
而在事爆發之後，目前中國地區已有許多車廠開始停止使用錦湖輪胎作為新車出廠的配胎。目前已有包括哈爾濱市政府所要求工商局消保處召開汽車經銷企業座談會，要求全面停止銷售配備有由天津廠區所生產的錦湖輪胎之新車，如果有上述情況也必須照消費者的要求無條件更換輪胎；而包括長城汽車與一汽大眾等車企也紛紛宣佈停止使用錦湖輪胎作為新車出廠配胎，甚至有可能就此終止雙方的合作，試圖在這波衝擊中達到止血的效用。
目前中國政府已經對錦湖天津廠區進行了抽樣檢驗，並責令在事實查清前停止相關產品的生產和銷售，中國品質認證中心也同時暫停了錦湖輪胎產品的13張認證證書，並且命令相關產品不得繼續出廠銷售。
According to the CCTV report, Kumho Tire supplies tires to the Chinese ventures of General Motors (GM), Volkswagen and Hyundai Motor. Following the CCTV reports, they sought to minimize damages from the tainted brand issue.
The Chinese automakers were quick to deal with the Kumho's brand-damage issue by responding promptly to the CCTV's news reports.
Right after the reports, the Great Wall Motor Company said that it would change all the products into new ones if customers are to clamor for exchanges, adding that it is considering not using Kumho's products down the road.
Dongfeng Motor Corp. said that tires used for manufacturing their cars were all made in Nanjing factory, promising its free-of- charge investigation and exchanges of their built-in tires. FAW-VW Automobile also confirmed that it has used Kumho tires mainly made in Changchun and Nanjing factories.
The Chinese ventures of foreign carmakers showed their knee- jerk reaction against the issue for fear of being blamed for their quality control along with Kumho Tire.
GM's Shanghai venture immediately issued an online statement after the TV report on the defective tires, saying that the Kumho tires used were produced in Nanjing. The company also said that it would help handle consumer complaints or inquiries.
Chery Automobile also told Xinhua that none of the Kumho tires used on some of its vehicles is made at the Tianjin plant.
Volkswagen Shanghai venture said on its website that none of the vehicles manufactured at the venture has ever used Kumho's tires. A spokesman at Hyundai Motor told Xinhua that the company is figuring out the matter.
CONFIDENCE RESTORATION
Market watchers here said that Kumho Tire will inevitably be damaged with their reputation in China, one of the company's growth drivers, stressing that it remains to be seen whether the South Korean tiremaker may restore their confidence from the Chinese consumers and its client companies.
Experts noted any sign of potential damage to Hyundai Motor, one of Kumho's key clients, has not been spotted yet, but Hyundai could shun the reputation risk through contractor shift from Kumho to another tiremaker such as Hankook Tire.
"In terms of original equipment (OE) sector, Kumho Tire has the biggest market share of 23 percent in China, but Kumho's brand will likely be damaged on the CCTV's reports," Park Sang-won, a Seoul-based analyst at Eugene Investment & Securities, told Xinhua.
"Kumho has a strong point in the OE area, which usually improves the performance in the replacement equipment (RE) sector. Kumho could minimize the reputation risk assuming that Kumho smoothly manage relationship with client companies," Park said.
"Kumho reportedly used the residue of original tire, which is totally different from recycled rubber. If the misunderstanding were to be resolved, the issue would have a limited impact on Kumho, but it has already been broadcast in a large way, so the company's brand will likely be damaged," Lee Sang-hyun, an analyst at NH Investment & Securities in Seoul, said by phone.
"Hyundai Motor will not be influenced by the Kumho issue because the South Korean carmaker may shift its tire supplier from Kumho to other companies if public opinion among Chinese consumers deteriorates," he added.
"Kumho decided to apply for voluntary recall, but it remains to be seen how Chinese consumers and its client companies would accept the decision," Yim Eun-young, an analyst at Dongbu Securities, said by phone.
"Kumho is faced with brand risk in China which is the biggest market of the company and is very important for turnaround in earnings of the firm," he added. Enditem
-----------------------------------------------------------------------------------------------
AUTONET Mobile News:
2010年錦湖輪胎KL61才拿下當地「汽車雜誌」年度最佳均衡越野輪胎的殊榮。
在中國被中國中央電視台所踢爆的韓國錦湖輪胎（KUMHO），其天津廠區未依照標準生產程序，大量使用成本較低、品質欠佳的回收膠料來製造新輪胎，不僅導致錦湖輪胎全球總裁金宗鎬、中國區總裁李漢燮於當地電視節目中向消費者致歉，也讓許多以錦湖輪胎作為OE胎供應廠商的車廠暫時停止裝配錦湖輪胎供新車使用。
錦湖輪胎是JEEP G.Cherokee在中國的標準配胎。
事實上，當中央電視台首度踢爆錦湖輪胎使用不確實原料的情況後，錦湖輪胎還一度否認、並稱該報導內容並非事實。然而後續的負面效應卻開始如雪球般愈滾愈大，在經過對天津廠區的進一步內部調查之後，發現的確存在不按照內部標準進行生產的情事，在追究廠區經營及管理層級的幹部失職責任之後，錦湖輪胎對於案情的態度才出現急轉直下的轉變，並且在電視節目中同時表示將於中國召回所有不符合規定生產的瑕疵產品。
據瞭解這項召回案例是中國地區首見的輪胎召回案例，而且由於錦湖輪胎是全球排名十大之內的輪胎公司，同時也是中國OE胎款中市場佔有率第一的品牌，而天津廠區則是該企業在中國的第二個製造工廠，在南京地區則另有一個生產基地。
而在事爆發之後，目前中國地區已有許多車廠開始停止使用錦湖輪胎作為新車出廠的配胎。目前已有包括哈爾濱市政府所要求工商局消保處召開汽車經銷企業座談會，要求全面停止銷售配備有由天津廠區所生產的錦湖輪胎之新車，如果有上述情況也必須照消費者的要求無條件更換輪胎；而包括長城汽車與一汽大眾等車企也紛紛宣佈停止使用錦湖輪胎作為新車出廠配胎，甚至有可能就此終止雙方的合作，試圖在這波衝擊中達到止血的效用。
目前中國政府已經對錦湖天津廠區進行了抽樣檢驗，並責令在事實查清前停止相關產品的生產和銷售，中國品質認證中心也同時暫停了錦湖輪胎產品的13張認證證書，並且命令相關產品不得繼續出廠銷售。
