1.66 lakh units of the Ford Figo and Fiesta Classic recalled

A manufacturing glitch that surfaced in 2011 continues to haunt Ford Motor's best sellers Ford Figo and Fiesta Classic in India, forcing the Indian subsidiary of the American car maker to announce a second round of recall, the biggest ever in India so far. 

The company is recalling 1.66-lakh units of Ford Figo and Fiesta Classics. Almost every Figo sold till August 2012 since its launch was affected by a potentially faulty rear twist beam. ET tried to ascertain whether it was a design flaw or a glitch in manufacturing process at the supplier end. 

Incidentally, the recall announced last week is an extension of the August 2012 recall of 1.28-lakh units of Figo and Classic produced between January 2008 and December 2010. 

People in the know say the problem is possibly due to a crack in the rear twist beam, or RTB, that first manifests in the form of an abnormal noise from the rear. RTB is a rod connecting the two rear wheels of a vehicle. If the fault is ignored and the vehicle is driven with the malfunction, it could lead to the RTB unit breaking, resulting in diminished ride quality, handling and brake performance, rendering the vehicle inoperable.

The company also identified the possibility of an oil leak developing in the hose, which could result in fumes being emitted from the area causing a leak. It may also be possible for power steering fluid to come into contact with the vehicle's exhaust components creating the potential for smoke and, in extreme cases, fire. 

ET learns from Ford India that the problem dates back to early 2011. People close to the company say the RTB problem is a more related to design, whereas in case of the power-assisted steering system hose, or the PAS hose, the quality of material - especially the rubber - could be in question. Almost 99% of Figo produced and sold till June 2012 (169,476) was impacted due to the design flaw, which was rectified. 

People close to the company said the carmaker took swift measures to rectify the glitch. The Figo launched in October 2012 with a facelift did not have the problem, they said. While the problems did not compromise safety, the company says it took pre-emptive measures in recalling the vehicles. The number is huge, almost 99% of Figo manufactured from February 2010 to June 2012. Due to infrastructural issues, the company could not have rectified the problems in one go, so the second batch was recalled in September, it said. 

Over 60,000 Figos now run on Indian roads. 

Without commenting on the genesis of the problem, the Ford India spokesperson, in an email reply, said: "It is important to note that all Ford Figos and Classic vehicles manufactured after November 2011 with respect to the PAS hose issue and June 2012 for the RTB issue are not affected. For the RTB issue, vehicles produced outside the original and extended scope are not impacted and vehicles produced post June 2012 already include component modifications. Ford is totally committed to the quality of our products and customer satisfaction." 

Experts say, in majority of the recalls, the problem has either emerged due to design flaw or at the sourcing end, which may have been imported through an outside supplier. A local base for R&D and local sourcing could play a big role in avoiding such product issues in future, feel some. Stricter recall norms are likely as the government gets into the act. 

With over six recalls in the past 12 months, the heavy industry ministry has been compelled to look at the mandatory recall policy. This was the sixth recall since the automotive industry body, Society of Indian Automobile Manufacturers Association (SIAM), came out with the voluntary recall policy in July 2012. 

ET learns that NATRIP, an affiliate of the ministry of heavy industry, is doing a study and is expected to submit its report to the ministry on September 25. The matter will then be taken up with the inter-ministerial group, which has representation from the ministry of road transport & highways, or MORTH, the heavy industry ministry, law & justice and the consumer affairs ministry. 

ARAI is currently drafting the model for a recall policy based on the best practices adopted across the world. The ministry is also contemplating to include a clause that will make a recall mandatory in case of frequent customer or dealer complaints. 

Vishnu Mathur, director-general of SIAM, the recalls in other countries are generally more than what has been announced in India in the last one year. "All these things used to happen in the past also, but many companies did not use the word recall. With the voluntary recall policy, the transparency has increased. In most of the recalls, not a single case of accident has been reported. If an automaker has discovered a potential defect, by announcing the recall, the company is moving towards rectifying it," Mathur said. 

SIAM's voluntary recall policy has made it mandatory for automakers to inform the heavy industry ministry of any recalls. Road transport industry experts say it is highly impossible to deliver a zero-defect vehicle all the time since a car is made up of over 20,000 parts. While the spate of recalls in India has increased significantly post the voluntary recall policy by SIAM, it is still viewed as negatively in some quarters. 

Sandeep Singh, deputy MD and chief operating officer - marketing and commercial, Toyota Kirloskar, says unlike India, in other parts of the world, customers are much more educated and they understand recall well. "There is a mixed response to recalls in India. We still have to travel the distance to convince the customers that a recall is good for them. The perception still is that if there is a recall, there is something wrong with the product or there is an issue with the quality of the product," Singh said. 

He, however, believes the number of skeptics have reduced significantly over a period of time. "We have had several recalls in India. The People now are more appreciative of the fact that recalls are done for the safety of customers," Singh said 

V G Ramakrishnan, MD, Frost & Sullivan, South Asia said Voluntary recall policy of OEM's of late has increased the number of vehicles being called back to rectify manufacturing defects. While a spurt of such incidents may lead to questions on quality of vehicles, voluntary recall policy has ensured that OEM's are coming forward to rectify issues that may have gone unattended in the past. 

"Consumers rights are addressed and at the same time there is constant pressure on OEM's to improve quality. Governments Mandatory recall policy is one a step forward to the voluntary recall policy. However there is a requirement for a clear framework and agencies that will monitor and implement the policy. Making these agencies accessible to consumers will be a key and purpose for Government's involvement in this relevant," added Ramakrishnan. 

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