Sony Sorry For Laptop Battery Recall
Top Executives Won't Resign Over Recall Of Nearly 9.6M Batteries Worldwide
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Play CBS Video Video Computer Battery Recall Dell has ordered the recall of Sony batteries on nearly one-fifth of its current notebook computers. As Cynthia Bowers reports, Dell and Sony aren't the only ones feeling the heat.
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Video MoneyWatch Stacey Tisdale reports the market made slim gains despite a cooling housing market, mortgage rates fell again, and Wall Street is watching Sony and Apple shares after a massive laptop battery recall.
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Yutaka Nakagawa, center, Sony corporate executive officer, accompanied by Sony executives Makoto Kogure, left, and Naofumi Hara, publicly apologizes for a worldwide recall of laptop batteries during a press conference in Tokyo, Oct. 24, 2006. (AFP/Getty Images)
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The embarrassing spate of battery recalls that is threatening to tarnish the once impeccable Sony brand power is coming at a time when Sony has been struggling to turn around its core electronics business.
It could hurt the Japanese electronics and entertainment company's sales during the critical year-end shopping season. For some, Sony's woes have shaken this nation's confidence in its long prized manufacturing prowess.
Sony slashed its profit forecasts last week, citing the battery recall as well as price cuts in Japan for the next-generation PlayStation 3 video game console. Sony expects an $673 million profit for the fiscal year through March 2007, down 38 percent from its projection in July.
John Yang, equity analyst with Standard & Poor's in Tokyo, said the recall problem is unlikely to devastate Sony's battery operations because only a handful of major companies compete in that business.
"It's definitely making a dent in Sony's image," he said. "But if Sony does well with games and LCD TVs, Sony still has a chance to come back as one of the major players."
Sony Corp. said improvements in production, design and inspection have been made to prevent a recurrence of any laptop overheating problems. Company officials said the problems were caused by microscopic metal particles that mistakenly got inside the battery, causing short-circuiting.
Sony said last week that about 9.6 million lithium-ion batteries, manufactured between August 2003 through February this year, are being recalled worldwide after reports of some computers using the Sony battery packs overheating and bursting into flames.
Top management, including Chief Executive Howard Stringer and President Ryoji Chubachi, would stay on at the company and make the successful completion of the recall a priority, Sony officials said.
"We would like to take this opportunity to apologize for the worries," Sony Corporate Executive Officer Yutaka Nakagawa said, bowing slightly with two other executives at a news conference at a Tokyo hotel.
There would be no move to drop or curtail the company's laptop battery production, the company said.
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- Hello Deann5257,
Try calling the local Costco, first thing. They should certainly have some information about how to contact Sony. Also your local library may have a reference room that you can call. They have all kinds of information. - Reply to this comment
- Who do I contact about the recall on Sony Laptop lithium batteries. I have one!. I really am not sure my laptop was made between 2003 and now. But I think I bought it in 2004 at Costco.
- Reply to this comment
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