GS Yuasa Reports $30 Million Loss Over Faulty Batteries Supplied to Mitsubishi for i-MiEV and Outlander PHEV

AUG 2 2013 BY ERIC LOVEDAY 5

Mitsubishi Outlander PHEV's 12 kWh Lithium Battery Provided by GS Yuasa

Mitsubishi Outlander PHEV’s 12 kWh Lithium Battery Provided by GS Yuasa

According to Japanese news outlet Nikkei, GS Yuasa is set to suffer from some big losses in relation to the faulty battery packs it supplied to Mitsubishi.outlander phev badging

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.

Quoting Nikkei:

“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.

Source: Nikkei

 

 

 

 

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5 Comments on "GS Yuasa Reports $30 Million Loss Over Faulty Batteries Supplied to Mitsubishi for i-MiEV and Outlander PHEV"

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Yeh and don’t forget the losses on the Boeing 787. That’s a Yuasa battery also.

True…though Yuasa stated this in regards to the 787 mess up: there is no impact at this point on earnings. Replacement and maintenance demand for the aircraft batteries is will be in fiscal 2016.

This makes about 6000$ per battery change. Doesn’t sound very much.

I get $7000
($30M/4,313 batteries replaced in Japan)
Or $580/kWh, sounds about right…

Yuasa should have done more R&D, but that looking in the rear view mirror is easy to say..
Expensive lesson as the 30M would have built a nice R&D centre.