More Recall Woes for Mattel

EL SEGUNDO, August 14: Just two weeks since recalling 1.5
million Fisher-Price toys manufactured in China, Mattel has announced the
recall of 436,000 Cars die-cast vehicles
over “impermissible levels of lead,” as well as more than 18 million magnetic
toys.

The die-cast toys, of the “Sarge” character from Pixar’s Cars, were manufactured between May and July 2007. The
436,000 recalled vehicles include 253,000 in the U.S. and 183,000
internationally. The Cars toys
were produced by Early Light Industrial, one of Mattel's contract manufacturing
facilities in China, which subcontracted the painting of parts of the toy to
another vendor, Hong Li Da (HLD), also in China. While HLD was required to
utilize paint supplied directly from Early Light, it instead violated Mattel's
standards and utilized paint from a non-authorized third-party supplier.

"We have immediately implemented a strengthened
three-point check system,” said Jim Walter, the senior VP of worldwide quality
assurance at Mattel. “First, we're requiring that only paint from certified
suppliers be used and requiring every single batch of paint at every single
vendor to be tested. If it doesn't pass, it doesn't get used. Second, we are
tightening controls throughout the production process at vendor facilities and
increasing unannounced random inspections. Third, we're testing every
production run of finished toys to ensure compliance before they reach our
customers. We've met with vendors to ensure they understand our tightened
procedures and our absolute requirement of strict adherence to them.”

Additionally, Mattel announced the voluntary recall of
magnetic toys manufactured between January 2002 and January 2007, including
certain dolls, figures, play sets and accessories that may release small,
powerful magnets. They include toys based on the Polly Pocket, Batman and One
Piece brands. Mattel is recalling 18.2 million magnetic toys globally (9.5
million in the U.S.); however, the majority of the toys are no longer at
retail. "Since our November 2006 magnet-related recall, we have
implemented more robust magnet retention systems and more rigorous testing,”
Walter said. “We are exercising caution and have expanded the list of recalled
magnetic toys due to potential safety risks associated with toys that might
have loose magnets.”