Battery recall cost Sanyo $17 million

SANYO ELECTRIC COMPANY blamed a battery recall for the loss of 2.04 billion yen ($17 million) from its bottom line as its fiscal year came to an end.

The firm had supplied Japanese mobile phone firm NTT DoCoMo Inc. with a bunch of batteries which were recalled for the usual reasons. Some 1.3 million fizzing batteries were recalled.

Ahead of the financial disclosures, Sanyo announced on March 27th that reports in the media regarding the resignation of the president of the firm, Toshimasa Iue, were false. "Sanyo Electric Co., Ltd. has not made any such announcement and there was no such decision made among the President or other executive management," said the statement.

The very next day, March 28, 2007 the firm issued the following statement:

"SANYO Electric Co., Ltd today announced that its Board of Directors has appointed Seiichiro Sano as the Company's new President. The appointment is a result of SANYO's ongoing structural transformation process and is effective as of April 2, 2007. Mr. Sano, 54, who until now has served as Vice President General Manager of General Affairs/Human Resources and, succeeds Toshimasa Iue as President."

Funny how things turn out, innit? µ