The products are still made in Germany, the only parts that come from China are the power supplies and impeller magnets, parts which cannot be bought anywhere else. After 6 years of 30% annual growth worldwide Tunze had to expand and the factory basically added 50% more employees and 50% more space and a seperate machining facility that is within a couple blocks of the main factory in Penzberg. Add to this that there were radical changes in product design, the Nano Stream was unlike any other pump we have ever built. In general we make changes as a slow evolution with only one or two small changes to a product every 6 months or so. In this way every change is tested and results in improvements rather than major problems. We had other problems with the RohS compliance and new VDE mandates that required changes in materials. This made 2007 a very, very hard year, 15+ inexperienced employees, new plastics which we were told to use to meet standards but had no experience with and complete redesigns. For the most part we had the same problems here but we acted quickly to solve them, we intercepted a lot of the faulty products in our warehouse so they weren't sold and we quickly serviced the ones which made it to market. We have a plan in place now to implement a Kaizen style model (similar to Toyota management) by 2010 and we are back on track with a slow evolution and more thorough testing of products prior to release and the problems are a part of the past. If you contact Tunze in Germany, they will honor the warranty. You will likely have to send the products back but it will be replaced.