GS Yuasa Reports $30 Million Loss Over Faulty Batteries Supplied to Mitsubishi for i-MiEV and Outlander PHEV
The defective packs, which led to a whole host of issues for the Mitsubishi i-MiEV and Outlander PHEV, had to be replaced by GS Yuasa’s Lithium Energy Japan division, of which Yuasa holds a 51% stake.
“The batteries were made by Lithium Energy Japan, in which GS Yuasa holds a 51% stake. Mitsubishi Motors in June issued the recall, which incurs collection and replacement costs for GS Yuasa.”
GS Yuasa reportedly set aside $30 million to pay the replacement costs for the defective packs.
This setback has not dampened GS Yuasa’s lithium-ion commitment.. As Nikkei reports:
“GS Yuasa also unveiled a new three-year business plan through fiscal 2015, calling for a 12 billion yen [US$120 million] investment in expanding lithium ion battery production.”
Fortunately, all of these issues have not delayed the US launch of the Outlander PHEV by all that much. It’s still set to launch here sometime in 2014.