STOCKHOLM--(BUSINESS WIRE)--Regulatory News:
In November, Haldex launched a field inspection campaign of one of its actuator models in the North American market. Based on a thorough analysis of the field inspection results, an additional root cause, that can occur during special conditions, has been identified. Haldex has therefore decided to extend the campaign to include product replacements.
In conjunction with the interim report for the third quarter, Haldex announced a product-related risk which resulted in a field inspection campaign. A diaphragm in the actuator could get out of position during the manufacturing process, resulting in the actuator triggering the parking brake. Further analysis shows that the same error, under certain special conditions, can occur on trailers, if the vehicle’s pneumatic system is not functioning properly. The specific behavior in the pneumatic system affects Haldex actuators that do not handle this system discrepancy in a completely reliable manner. Haldex will therefore offer an alternative product as replacement.
Bo Annvik, President and CEO: "We are extremely committed to continuously improve our business. Despite this, we now have a case that requires major efforts in the form of a field inspection and replacement program. The failure rate is very low but we obviously take responsibility for our products and want to be a good long term partner for our customers.”
The number of vehicles covered by the replacement program is approximately 20,000 in the North American market. Failure rate is estimated to 0.03 percent, in total, for both the field inspection and replacement program. The cost is estimated at SEK 65 million. This amount replaces the previous estimate of SEK 35 million, which was announced in the Q3 interim report. The total cost will be classified as a one-off item and will have a negative impact on earnings in the fourth quarter.
Haldex has filed an updated report to National Highway Traffic Safety Administration (NHTSA) in line with the information in this press release and is awaiting their decision and further investigation.
For further information visit www.haldex.com or contact:
Bo Annvik, President & CEO, 46 418 476000
Catharina Paulcén, SVP Corporate Communications, email@example.com or +46 418-476157
Haldex AB (publ) is required to publish the above information under the Swedish Financial Instruments Trading Act. The information was submitted for publication on February 5, 2015 at 8.30 am CET.
With more than 100 years of intensely focused innovation, Haldex holds unrivaled expertise in brake systems and air suspension systems for heavy trucks, trailers and buses. We live and breathe our business delivering robust, technically superior solutions born from deep insight into our customers’ reality. By concentrating on our core competencies and following our strengths and passions, we combine both the operating speed and flexibility required by the market. Collaborative innovation is not only the essence of our products – it is also our philosophy. Our 2,135 employees, spread on four continents, are constantly challenging the conventional and strive to ensure that the products we deliver create unique value for our customers and all end-users. We are listed on the Nasdaq OMX Stockholm Stock Exchange and have net sales of approximately 4 billion SEK .
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