I really wish that I had come across this article sooner. I will highlight excerpts from the NY Times Article it but I strongly recommend you read the full thing.

By Louise Story- August 29, 2007

Now Mattel, which appears to have stumbled in part because it had become overconfident about its ability to operate in China without major problems, is in crisis mode. Toys for the coming holiday shopping season are already shipping across the Pacific, and Mattel wants to catch any other problems that may have slipped through — before those toys land on store shelves and cause even greater damage to its reputation.

A big problem was that some of Mattel’s trusted vendors had turned to cheaper paint suppliers outside the company’s approved list. Mattel is now racing to increase its supply and product testing, no longer giving local contractors several months at a time to do the tests themselves.

Mattel executives are openly saying that there may be more recalls, if the company finds more problems in its investigation. And Mattel has quietly carted loads of toys and dolls to its own factories in Mexico to recheck the ones that have arrived from Chinese contractors in recent weeks.

Yikes- more recalls? I’m happy to hear that they are being honest and not sugar coating, however, with the holiday season on the horizon I hope the discover any tainted products as soon as possible.

The ever-growing pile of products recalled this year has sent consumers digging through their pantries and toy chests, scouting for everything from Thomas & Friends toy trains and children’s jewelry to toothpaste, dog food and, most recently, SpongeBob SquarePants journals. Wal-Mart recently disclosed that one of the biggest concerns of its shoppers is the safety of toys from China.

One mother was so infuriated by the recalls that she brought her children to Mattel headquarters this month with a car full of Mattel toys demanding that the company sort through them to tell her which ones were safe. (Mattel found that all of her toys were fine.)

Very interesting Walmart admits that Toys made in China are becoming a big concern among their customers…. PLEASE let this be an encouragement to you, shoppers, that letting the stores know, whether it be by email, snail mail, or face to face, that this IS something that you care about… they are listening and others are talking, so DO IT. Walmart and Target shoppers in particular (ok, Toys-R- Us to,) Make sure you let someone in charge there know you are label watching. You will feel strange at first, but it is important they continue to hear this message.

As far as the woman who drove her toys to Mattel… YOU GO! That is just plain awesome.

The two contractors that caused this month’s recalls were among the most trusted. Lee Der Industrial, the supplier involved in the first recall, had worked with Mattel for 15 years. The Early Light Industrial Company, the contractor that made the Sarge cars in the second recall, has supplied toys for 20 years.

I don’t know about you but it does not make me feel any better that the manufacturer responsible for the recent Mattel recall is most-trusted by Mattel. What are we to think of their less-trusted manufactures.

On a side note- A toy designer that lives in China recently told me that Mattel is actually one of the better manufacturers in China. Think of the companies that aren’t recalling and are just trying to get away with selling tainted products.

Out of the public eye, Mattel is cleaning house. The company has fired four subcontractors and is evaluating more. Mattel also moved to enforce a rule that subcontractors cannot hire two and three layers of suppliers below them.

Mattel executives in Hong Kong are trying to figure out how many subcontractors became part of its lineup. Mattel’s Hong Kong office is also investigating to find a common thread among the lead recalls in China. Mattel has 200 full-time employees devoted to supervising and training Chinese contractors — but the Mattel employees are not stationed permanently at those factories.

As part of its effort to rebuild its image, Mattel is emphasizing that it is less dependent on Chinese contractors than most toy makers. It has run ads around the world featuring Mr. Eckert’s vow to do better.

“There aren’t many companies that own their own factories,” Mr. Eckert said in an interview in his office, “and there aren’t many companies that manufacture outside of China.”

Mattel closed its last American factory, originally part of the Fisher-Price division, in 2002. The bulk of its products have long been made in Asia. In the 1980s, Mattel decided to take more control of its core products, like Barbie and Hot Wheels cars, and built and purchased several factories. About 65 percent of Mattel products are made in China now. Or, as a Mattel executive rephrased it, more than a third of Mattel toys are made outside of China. Many Barbie dolls, for example, are produced in Indonesia.

I find it sad that the last US plant for Mattel closed in 2002, anyone else?

Really this entire article is quite informative, I encourage you to read the whole thing now.

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