[Congressional Record Volume 140, Number 111 (Thursday, August 11, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: August 11, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
 CONDEMNING THE SHODDY WORK AND POOR BUSINESS PRACTICES OF MCT CUSTOM 
                      TRUCK BODIES OF MEMPHIS, TN

                                 ______


                            HON. TOM LANTOS

                             of california

                    in the house of representatives

                       Thursday, August 11, 1994

  Mr. LANTOS. Mr. Speaker, I wish to draw the attention of the U.S. 
Congress to a serious contract dispute that harbors grave implications 
for U.S. export policy and for the reputation of American-made products 
in the world marketplace. This is a story of greed and incompetence 
whose impact reaches far beyond the confines of North America, to the 
shores of distant customers in newly emerging markets.
  Konsumex North America, Inc., of San Mateo, CA, a multiproduct 
export-import company without expertise in armored vehicles, contracted 
with a Hungarian buyer for the shipment of an armored Ford Aerostar van 
to Hungary. The vehicle would be a demonstration model which would 
hopefully lead the Hungarian buyer to purchase a fleet of 20 to 25 
vehicles. The Aerostar van sent to Hungary was supposed to be a sample 
of American quality and workmanship, a taste of things to come. What 
Konsumex, Inc., did not know, however, was that their subcontractor for 
the armor modifications, MCT Custom Truck Bodies, Inc., of Memphis, TN, 
a self-declared expert in armored vehicles, would create a disaster out 
of the Aerostar van. Through its incompetence, broken promises, and 
shoddy workmanship, MCT cost Konsumex valuable business opportunities 
and damaged the reputation of American products and craftsmanship in 
the eyes of new, European customers.
  Although Konsumex, Inc., met all of its obligations under its 
contract with MCT, MCT nevertheless shipped to Hungary a modified 
Aerostar van far exceeding the permissible gross vehicle weight, yet 
lacking the extensive strengthening of the suspension, axles, and 
related parts necessary for the proper operation of the vehicle. Upon 
examination by the buyer--a subsidiary of the Hungarian Government--and 
in the presence of high ranking government and industry 
representatives, the Aerostar van was rejected as unsafe and 
inoperable.
  Despite repeated promises to Konsumex, Inc., from MCT of high quality 
workmanship and timely delivery, neither of which were met, MCT 
delivered a vehicle which ``MERTCONTROL,'' a neutral Hungarian quality 
institute, rejected as shoddy, overloaded, and unsafe. Upon its return 
to the United States, the vehicle was examined by the U.S. National 
Highway Traffic Safety Administration, which declined to get involved 
in the contract dispute, but confirmed that the vehicle severely 
exceeded the manufacturer's assigned gross axle and vehicle weight 
ratings. In addition, the tires and braking system were inadequate for 
a vehicle of such weight. MCT knew this vehicle was leaving the country 
and was completely unconcerned with the serious issues of safety and 
quality.
  In a further outrage, not only did MCT fail miserably to modify the 
Aerostar van to the contract specifications, but it also refuses to 
refund the over $31,000 invested and lost by Konsumex, Inc., in this 
venture. Furthermore, MCT avoids communication with Konsumex, Inc., as 
much as possible. Although MCT has offered to repair the vehicle as 
best it can, the opportunity to sell vehicles to the Hungarian buyer 
has passed. The Hungarian buyer--disappointed with the initial model--
declined to pursue further purchases.
  In the end, the Hungarian buyer was cheated, Konsumex, Inc., was 
cheated, and American exporters will be cheated out of future sales 
because of the greed, incompetence, and gross negligence of MCT of 
Memphis.
  Mr. Speaker, when an American company cuts corners on products for 
export, delivers shoddy goods after lengthy delays, and otherwise 
treats foreign customers as if they are cash cows to be milked and then 
discarded, all American exporters and all American products suffer. 
MCT's blatant disregard for the importance of quality work for a fair 
price and the cultivation of an honest and reliable business 
relationship with its clients presents an embarrassing image of 
American business practices.

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