Yesterday, Samsung Electronics announced that the company is ending production of the Galaxy Note 7 smartphone permanently, due to the reported ‘defective batteries’ within the company’s latest fiery flagship.
Analysts claim the initial recall and now, the end of production, could cost the company as much as $17 billion.
From tech and cars, to food and toys, we look at some of the other expensive recalls in recent history, which like the Note 7, saw several company’s planned profits go up in smoke.
Mattel’s Toys | $30 million
This was the biggest recall for the world’s largest toy company ever. In 2007, Mattel issued a recall to over 19 million toys over fears that they had excessive levels of lead in their paint. The main culprits were a line of Chinese-made toy cars from Disney’s animated movie Cars.
Dell’s Batteries | $400 million
Lithium-ion batteries have been making life difficult for tech companies for years. In 2006, Dell recalled more than 4 million laptop batteries to the tune of a predicted US400 million. This was due to the Sony-manufactured lithium-ion batteries in the laptop.
Mars’ candy bars | ‘the millions’
Earlier this year, Mars recalled chocolate from over 50 countries after a small piece of plastic was found in one of its candy bars. A Snickers bar to be precise. While the company has yet to disclose the actual cost it would incur, experts and analysts claim that figure could run into ‘the millions’.
Merck & Co. - Vioxx | $830 million
In 2004, Vioxx a non-steroidal anti-inflammatory drug (NSAID) and a prescription painkiller, was pulled due to the risk of deadly heart attacks and strokes. Several controversies and scandals surrounded the incident, and an estimated 38,000 people died from its side effects. Earlier this year, the company announced that it is ready to pay more than $830 million towards a lawsuit settlement.
Toyota | Lots of money
Toyota is no stranger to product recalls. From 2009 to 2011 the Japanese automotive manufacturer recalled millions of vehicles for several issues such as faulty floor mats and accelerator pedals, and glitches in its anti-lock brake system software. Last year, the company recalled over 6.5 million cars due to a fault in its power window switches.
