In Turnaround, Mattel Takes Blame for Toy Recalls

BEIJING — American-based toy giant Mattel Inc. issued an extraordinary apology to China today over the recall of Chinese-made toys, taking the blame for design flaws and saying it had recalled more lead-tainted toys than justified.The gesture by Mattel’s executive vice president for worldwide operations, Thomas Debrowski, came in a meeting with a Chinese product safety chief, Li Changjiang, at which Mr. Li upbraided the company for maintaining weak safety controls.“Our reputation has been damaged lately by these recalls,” Mr. Debrowski told Mr. Li in a meeting at Mr. Li’s office at which reporters were allowed to be present.“And Mattel takes full responsibility for these recalls and apologizes personally to you, the Chinese people, and all of our customers who received the toys,” Mr. Debrowski said.Mattel ordered three high-profile recalls this summer involving more than 21 million Chinese-made toys, including Barbie doll accessories and toy cars because of concerns about lead paint and tiny magnets that could be swallowed.The recalls have prompted complaints from China that manufacturers were being blamed for design faults introduced by Mattel.Today, Mr. Debrowski acknowledged that the “vast majority of those products that were recalled were the result of a design flaw in Mattel’s design, not through a manufacturing flaw in China’s manufacturers.”Lead-tainted toys accounted for only a small percentage of all toys recalled, he said, adding that: “We understand and appreciate deeply the issues that this has caused for the reputation of Chinese manufacturers.”In a statement issued by the company, Mattel said its lead-related recalls were “overly inclusive, including toys that may not have had lead in paint in excess of the U.S. standards.“The follow-up inspections also confirmed that part of the recalled toys complied with the U.S. standards,” the statement said.Mr. Li reminded Mr. Debrowski that “a large part of your annual profit … comes from your factories in China.“This shows that our cooperation is in the interests of Mattel, and both parties should value our cooperation. I really hope that Mattel can learn lessons and gain experience from these incidents,” Mr. Li said, adding that Mattel should “improve their control measures.”Since this summer’s recall, Mattel has announced plans to upgrade its safety system by certifying suppliers and increasing the frequency of random, unannounced inspections. It has fired several manufacturers.Tests had found that lead levels in paint in recalled toys were as high as 110,000 parts per million, or nearly 200 times higher than the accepted safety ceiling of 600 parts per million.Mattel’s shares fell from the mid-$23 level following the first recall in early August, reaching as low as $20.97 on September 10. They have since rebounded to the mid-$23 level again.China has become a center for the world’s toy-making industry, exporting $7.5 billion worth of toys last year.

In Turnaround, Mattel Takes Blame for Toy Recalls

In Turnaround, Mattel Takes Blame for Toy Recalls

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