Nokia recall to cost Matsushita $172M

Whether you choose to call it a recall or a "product advisory," Nokia's recent announcement that it would voluntarily replace 46 million mobile phone batteries is sure to have some financial repercussions for those involved. So it should come as no surprise, then, that the company has decided to pass the buck to Matsushita, the Japanese conglomerate that manufactured the faulty cells. Earlier this week, when asked whether Matsushita would be held responsible, Nokia worldwide CEO Olli-Pekka Kallasvuo reportedly responded "...of course they are responsible to us."

Just how responsible? To the tune of a cool $174 million, apparently. At a press conference in Tokyo, Matsushita announced that it will shoulder full responsibility for the recall. "Nokia and Matsushita have a long business relationship and the two companies are cooperating closely together in this situation," Masatsugu Kondo, president of Matsushita Battery, said. "Matsushita Battery has agreed to cover the direct costs associated with the product advisory, including, among other things, logistics costs, call center costs, and replacement battery costs." According to the company, total costs for the recall are estimated at 10-20 billion yen--about $86 to $172 million. 

For more on the announcement:
- see this MarketWatch article
- and this Engadget article

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