Investors in Mattel (NYSE: MAT) can no longer afford to sleep at night. They need to watch for news from China about the next recall of some defective product.
This time it is 775,000 toys with excessive amounts of lead paint. According to The Wall Street Journal the news will be announced tomorrow jointly by the company and the Consumer Product Safety Commission. The CPSC has been highly critical of Mattel for not reporting dangerous defects in a timely fashion. Mattel management is probably wise not to embarrass the federal government in the midst of all its recall problems.
The recalls have to be made. There is clearly no other choice. But, it does continue to raise the question of who is minding the quality control store at the big toy company. It must be someone other than the company management.
Douglas A. McIntyre is a partner at 24/7 Wall St.
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Reader Comments (Page 1 of 1)
9-05-2007 @ 8:12AM
JERRY said...
SO FAR CHINA HAS SHIPPED US CONTAMINATED PET FOOD AND CONTAMINATED TOYS. ONE OF THEIR MAJOR EXPORTS TO THE US ARE CERMAICS. HAS ANYONE THOUGHT OF CHECKING THESE PRODUCTS FOR LEAD GLAZES? THE LEAD GLAZE LEACHES OUT WHEN IT COMES IN CONTACK WITH ACIDIC LIQUIDS, SUCH AS TOMATO AND ORANGE JUICE.
IT SHOULD NOT BE THE RESPONSIBILITY OF THE GOVERNMENT TO CHECK PRODUCTS IT SHOULD BE THE IMPORTER. SINCE THE US CONSUMER WANTS TO PAY THE LOWEST PRICE THE ADDED COST WOULD INCREASE THE PRICE OF THOSE PRODUCTS AND MAKE US MANUFACTURERS, WHO HAVE TO TEST THIER PRODUCTS, MORE COMPETITIVE.
9-05-2007 @ 8:39AM
JERRY said...
AMERICA IS SHORTSIGHTED AND TOO TRUSTING. FIRST IT WAS PETFOOD AND THEN TOYS. WHAT ABOUT CERMAICS? IF THE GLAZES USED IN DECORATING THEM IS LEAD BASED IT WILL LEACH INTO ANY ACIDIC LIQUID, SUCH AS ORANGE OR TOMATO JUICE.
ALL IMPORTED SHOULD BE TESTED AND THAT TESTING SHOULD BE DONE BY THE IMPORTER AND NOT THE U.S . GOVERNMENT. WHY SHOULD THE TAXPAYER PICK UP THE TESTING BILL WHEN US MANUFACTURERS HAVE TO DO THEIR OWN TESTING AND CERTIFICATION? THE END RESULT WOULD BE A HIGHER PRICE FOR GOODS. THAT INCREASE IN PRICE COULD MAKE U.S. MANUFACTURED GOODS MORE COMPETITIVE AND BRING BACK U.S. MANUFACTURING JOBS.
9-05-2007 @ 1:24PM
R. Leger said...
Serves you right for not manufacturing here in the USA. Why dont you send some more things out of the country, and run your company into the ground. How much did you really save??