KONGSBERG AUTOMOTIVE (KA) SETTLES RECALL CASE WITH BRP AND TELEFLEX

[Rando]

link

The settlement concerns a claim filed by BRP at the Superior Court of Quebec amounting to 16 million Canadian dollars for costs incurred by BRP in connection with recall of BRP’s Can-Am Spyder vehicles. The vehicles were recalled as some vehicle owners had experienced problems with the power steering of the vehicle. The steering unit (DPS) was designed by Teleflex but manufactured and sold to BRP by KA. KA will according to the settlement, after being credited for own costs related to the recall, pay compensation to BRP of less than 20 % of the claim, with $1 million payable up front, already accrued in 2011, and the remainder through future program savings.

 

[ARtraveler]

Thanks for catching this one. Interesting information.

 

[Pennyrick]

Looks like Kongsberg is coming out of a huge hole from the latter part of 2008. The $3.2 million that the suit was settled for doesn't appear to be that much of a major hit for them, (they probably accrued something in their '08-'09 financials), so they must have had some other operating problems to deal with.

I'm assuming BRP has stuck with them as a provider of DPS units.

 

[Rayelljay]

"Teleflex also has niche businesses that serve segments of the aerospace and commercial markets with specialty engineered products."

This is from Teleflex's website....!

Didn't come out too bad though only having to pay 20%....not right at all.......if you screw up you should be held fully liable. You and I would be expected to do business that way.

I well remember that line in our engineering specifications "...at no cost to the owner."

Ray