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Feds Demand N.J. Tire Importer Pay for Recall

Chinese Manufacturer Denies Responsibility

By Joe Benton
ConsumerAffairs.com

June 27, 2007

In a letter to federal regulators dated June 11, Foreign Tire Sales Inc. of Union, New Jersey, told NHTSA that it doesn’t have enough money to conduct a voluntary recall.

Officials at NHTSA rejected the claim and described the FTS position on the recall as “unacceptable.”

Heather Hopkins, a spokeswoman for NHTSA, said agency enforcement officials spoke to FTS earlier this week to "let them know we want a full tire recall to take place."

"It is FTS' responsibility to do this," Hopkins said.

Associate Administrator for Enforcement Daniel C. Smith wrote FTS President Richard Kuskin stating that, “The Safety Act does not provide for any exceptions to the notification and remedy requirements based on the financial impact on the manufacturer. A company that chooses to import motor vehicles or motor vehicle equipment into this country accepts the same responsibility for compliance with the Safety Act as any other manufacturer.”

FTS bought light truck radial tires from Hangzhou Zhongce Rubber Co. Ltd. of China from 2002 and 2006.

Chinese Denial

The Chinese manufacturer of the light truck tires has now denied it supplied faulty products and accused its FTS of making the claim to gain an advantage in an unrelated dispute.

"We have not found the faults cited by FTS," Hangzhou Zhongce said in a written statement. It said its tires met U.S. safety standards and FTS' specifications.

"We believe this is merely an effort by FTS to stir up a fuss due to this lawsuit," the tire manufacturer said.

In its filing with NHTSA, FTS said it sold Hangzhou tires to the following distributors:

• Tireco, in Compton, California
• Strategic Import Supply, in Wayzata, Minnesota
• Omni United USA Inc., in Jacksonville, Florida
• Orteck International Inc., in Gaithersburg, Maryland
• K&D Tire Wholesalers LLC, in Carlsbad, California, and
• Robinson Tire, in Laurel, Mississippi.

An inspection of the tires by the New Jersey company found that the radials were made without a gum strip or with an insufficient gum strip between the belts. The gum strip is what helps keep the belts of a tire bonded.

The tires were sold under at least four brand names:

•Westlake,
•Compass,
•Telluride, and
•YKS.

They were sold in sizes

•LT235/75R-15,
•LT225/75R-16,
•LT235/85R-16,
•LT245/75R-16;
•LT265/75R-16; and
•LT3X10.5-15.

The tire recall comes amid safety concerns involving other Chinese products and is the latest scandal involving the importation of Chinese products to the U.S.

Other recent crises have involved tainted pet food, possibly poisonous toothpaste, and lead-painted toy trains.

U.S. inspectors have recently rejected Chinese exports containing high levels of toxins or potentially deadly chemicals, including frozen fish and juice.

Tire Hazards

The FTS tread separation issue is similar to the problem that led to the nation’s largest tire recall in 2000, involving Bridgestone and Firestone products.

In August of, 2000, Bridgestone/Firestone recalled 6.5 million Firestone tires. The tires, which were mostly on Ford Explorers, were blamed for causing 148 deaths and more than 500 injuries in the United States, at the time.

In the FTS case, Rafael B. Melo, Claudeir Jose Figueiredo and Carlos Souza were passengers in a 2000 Chevrolet Express 2500 Cargo Van bearing a Compass Telluride steel belted radial made in China in 2004.

The van was traveling south on Pennsylvania Route 476, when the tire experienced a tread separation causing the van driver to lose control.

The vehicle rolled over and the three passengers were ejected.

Melo and Figueiredo died in the crash. Souza suffered a permanent brain injury. The driver, who remained in the vehicle, suffered less severe injuries.

FTS on May 31 sued Hangzhou in U.S. District Court in Newark, charging that its tests found that the tires may fail earlier than those originally provided by Hangzhou and that a recall would put FTS out of business.

The lawsuit seeks unspecified monetary damages and an injunction that would bar Hangzhou products from being imported.

FTS was sued in Philadelphia on May 4 by the families of two men killed when a van they were riding in crashed last year. Also suing are the driver and passenger in the van, which the lawsuits say had Hangzhou tires.

FTS said it became concerned about Hangzhou tires in October 2005 amid an increase in warranty claims and began talks with the Chinese company, and then commissioned its own tests.

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