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Nokia says Matsushita will cover costs of faulty batteries

Matsushita Battery has agreed to cover the direct costs associated with the product advisory, including logistics costs, call center costs, and replacement battery costs.

business Updated: Aug 24, 2007 15:37 IST

Nokia Corp said on Friday that Matsushita Battery will meet all costs related to a warning earlier this month about faulty batteries.

The world's biggest mobile phone maker advised customers on August 14 that up to 46 million batteries used in some of its handsets could pose a risk of overheating. The advisory applied to Nokia BL-5C batteries made by Matsushita Battery Industrial Co Ltd between December 2005 and November 2006.

"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," Masatsugu Kondo, president of Matsushita Battery, said in a statement issued by Nokia.

The Finnish company said that 100 incidents of overheating of the Matsushita-made batteries had been reported worldwide, but that there had been no serious injuries or damage. All cases of overheating occurred during charging of phones, it said. Nokia did not issue a recall of the batteries but said that it would replace any battery covered by the advisory. Nokia said it will continue to cooperate with the Japanese battery maker.

"We are pleased with the good cooperation between Nokia and Matsushita. Together we aim to serve consumers in the best possible manner and minimize the inconvenience this issue could cause them," said Robert Andersson from Nokia's customer and market operations. Matsushita is one of several suppliers that have together made some 300 million lithium-ion BL-5C batteries used in 14 Nokia handset models.

Nokia sells products in 130 countries and employs 110,000 people worldwide. In the second quarter, it sold 100 million mobile devices accounting for 37 per cent of the global market share, according to technology research group Gartner Inc up for 34 per cent a year earlier.