Nokia recall costs Matsushita up to $172m

Japanese firm agrees to cover the replacement costs of Nokia's 46 million battery recall.

  • E-Mail
By  Ronan Shields Published  August 26, 2007

Japanese company Matsushita has said Nokia's battery recall may cost it as much as $172.5 million after it agreed to shoulder the financial burden of the product replacement.

Nokia, the world's largest mobile phone maker, earlier this month recalled 46 million of its Nokia-branded BL-5C batteries after warning customers they could overheat when recharging.

The vendor reported it had received nearly 100 reports of the devices overheating although it said there had been no serious injuries or property damage.

Masatsugu Kondo, president of Matsushita Battery, Matsushita's wholly owned battery subsidiary, said the two companies were working closely together to resolve the problem.

"Matsushita Battery has agreed to cover the direct costs associated with the product advisory, including, among other things, logistics costs, call centre costs, and replacement battery costs," he said.

The Osaka-based company, which supplied Nokia with 300 million BL-5C units, said it will incur the expense in the first half ending September 30. It said it did not plan to revise its earnings forecasts.

"The safety of our customers and the reliability and quality of our products are our top priorities," commented Robert Andersson, head of Nokia customer and market operations.

"We are pleased with the good cooperation between Nokia and Matsushita. Together we aim to serve consumers in the best possible manner and minimise the inconvenience this issue could cause them," he added.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code