Mattel Recalls 19 Million Toys Sent From China

By Louise Story and David Barboza | The New York Times
August 15, 2007

Mattel, the world's largest toy company, yesterday announced the biggest recall in its history.

In a double-barreled announcement, the company said it was recalling 436,000 Chinese-made die-cast toy cars depicting the character Sarge from the animated film "Cars" because they are covered with lead paint.

At the same time, the toy maker said it was recalling 18.2 million other toys because their small, powerful magnets could harm children if swallowed. The magnetized toys were also made in China, but they followed a Mattel design specification.

About half of the toys in each recall were distributed in the United States.

Amid a wave of increasing safety concerns about products made in China, the recall threatened to set the toy industry on its heels -- just as companies are beginning to ship toys to stores for the holiday shopping season, when half of all toy purchases are made.

Separately, laboratory tests have found that some Chinese-made vinyl baby bibs sold at Toys "R" Us stores appear to be contaminated with lead.

Industry analysts said Mattel's woes are part of a much larger problem.

"If I went down the shelves of Wal-Mart and tested everything, I'm going to find serious problems," said Sean McGowan, managing director and the toy analyst at Wedbush Morgan Securities. "The idea that Mattel -- with its high standards -- has a bigger problem than everybody else is laughable. If we don't see an increase of recalls in this industry, then it's a case of denial."

Even Mattel executives said repeatedly yesterday that the company may have more recalls.

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