Mattel Recalls 19 Million Chinese-Made Toys

By Richard Seward

Published on August 16, 2007

Mattel began with an announcement indicating it was recalling 436,000 die-cast metal cars colored with lead paint that depicted the Sarge character from the "Cars" animated film. In addition, the toy maker stated it was also recalling approximately 18.2 million other toys that contained small magnets that posed a choking hazard to children. All of the toys included in the recall were made in China. However, the toys containing the magnets were produced using designs specified by Mattel.

Of the recalled toys, approximately half were distributed to stores in the United States. These most recent announcements come in the wake of other recalls involving Chinese-manufactured products, including pet food and toothpaste.

In July, lead paint was also discovered to have been used in toy lines featuring popular characters from "Sesame Street" and "Dora the Explorer."

As a result of the recalls, Mattel and other distributors are being forced to consider moving production away from Chinese manufacturers to those companies they own and over which they have direct control.

Following news of the recalls, Mattel shares plunged to $23, a loss of 57 cents per share, but rebounded after the close of regular trading.

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