Mr. Walter said Mattel had long had quality checks in place, but added that now “we do realize the need for increased vigilance, increased surveillance.”
The company said today that 65 percent of its toys are made in China.
Earlier this month, Mattel recalled over one million Chinese-made toys, including Sesame Street and Dora the Explorer products made by its Fisher-Price unit, because they were contaminated with excessive levels of lead paint, which if ingested could pose health hazards to children.
Mattel’s stock was down about 2 percent in trading this afternoon.
Mattel executives said that the $30 million charge announced earlier this month includes the cost of today’s recall. But costs of doing business at the toymaker will go up as the new tests are integrated into its systems, Mr. Eckert said.
“We will have costs associated with this increased testing and vigilance, but what’s important here is we do not put a price on safety,” Mr. Eckert said.
...recalls...underscore the problems facing toy makers and other companies doing business in China. China has become a manufacturing powerhouse by depending on cheap labor and savvy cost cutting measures.
I'm just wondering, at what point does it begin to become cost prohibitive for American companies to export American manufacturing jobs to China?
... and of what value was the life of the man who owned the Chinese toy manufacturing company whose business in China was shut down due to the contaminated toys:
...Zhang Shuhong, a 52-year-old businessman, had apparently committed suicide, just days after Mattel blamed his company, Lee Der Industrial, in Foshan, in southern China, for the recall of one million toys coated in toxic lead paint....