Grant Gross
Senior Writer

Matsushita to cover direct costs of Nokia’s battery recall

news
Aug 24, 20072 mins

Costs of the battery recall affecting 46 million Nokia mobile phones could be as high as $172 million

Matsushita Electric Industrial (MEI) will cover the direct costs of a battery recall affecting 46 million Nokia mobile phones, which could be as high as $172 million.

MEI is the parent company of Matsushita Battery Industrial, which manufactured the batteries.

The estimated costs will be between ¥10 billion and ¥20 billion ($86 million and $172 million), Matsushita said in a Friday press release. The company will accrue those costs in the first half of 2008, the vendor added. The costs include money Nokia had to spend on logistics and call centers as well as the replacement battery costs.

Nokia announced Aug. 14 that it was recalling the Nokia-branded BL-5C batteries, made by Matsushita, because of a risk of overheating. The batteries were sold with a wide range of Nokia phones.

Any Nokia consumer who is currently using a Nokia product containing a BL-5C battery subject to the product advisory can request a replacement battery free of charge. Customers who would like to check if their BL-5C battery is subject to the advisory should visit the recall Web site or contact their local Nokia call center, Nokia said.

Nokia’s top priorities are “the safety of our customers and the reliability and quality of our products,” Robert Andersson [cq], head of Nokia customer and market operations, said in a statement.

Matsushita has established a corporate lithium-ion battery customer support and management division to help deal with the impact of the recall, the company said.

Grant Gross

Grant Gross, a senior writer at CIO, is a long-time IT journalist who has focused on AI, enterprise technology, and tech policy. He previously served as Washington, D.C., correspondent and later senior editor at IDG News Service. Earlier in his career, he was managing editor at Linux.com and news editor at tech careers site Techies.com. As a tech policy expert, he has appeared on C-SPAN and the giant NTN24 Spanish-language cable news network. In the distant past, he worked as a reporter and editor at newspapers in Minnesota and the Dakotas. A finalist for Best Range of Work by a Single Author for both the Eddie Awards and the Neal Awards, Grant was recently recognized with an ASBPE Regional Silver award for his article “Agentic AI: Decisive, operational AI arrives in business.”

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