Tuesday, June 26, 2007

New U.S. China Business Opportunity, Managing Recalls

Defective tires are the latest present from China to the American consumer courtesy of U.S. "manufacturers" contracting out production to the Far East. They follow poisonous pet food, children's toys covered in lead paint and tainted toothpaste.

The National Highway Transportation Safety Agency ordered Foreign Tire Sales, a small U.S. company to recall some 450,000 light truck radial tires made by Hangzhou Zhongce Rubber Co. as the tires could suffer tread separation. FTS said it has no capability of conducting such a large recall and pointed the finger at other major tire companies that sourced work to the same company.

As the government ordered a recall and the tiny company has capacity to conduct such a massive undertaking, what will happen? Will the government step in to ensure consumers are treated fairly? Will the problem just sit and smolder while families continue driving on potentially dangerous tires? Or will the modern day hero, the corporation come riding to the rescue?

Will the always efficient, ethical private sector come to rescue the never ending bumbling government bureaucracy incapable of tying its shoes? There's a new business opportunity in town, that of managing recalls for skeleton U.S. firms. Who'll step up to the plate to provide this needed service?

P.S. For anyone confused as to why the always efficient, ethical private sector could intentionally substitute harmful ingredients in food and toothpaste or skimp on gum strips that hold together tire belts, just remember the mantra "government bad, private industry good".

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