Matsushita Will Cover Cost of Nokia Battery Recall

Nokia said Friday that it had reached an agreement with Matsushita Battery to cover costs related to its August 14 recall of BL-5C batteries manufactured by the company for about four dozen Nokia phone models between December 2005 and November 2006. About 100 incidents of overheating have been reported, which is due to a short circuit occurring during charging. No serious injuries or property damage have yet been made public.

"The safety of our customers and the reliability and quality of our products are our top priorities," said Robert Andersson, head of Nokia Customer and Market Operations in a statement. "We are pleased with the good cooperation between Nokia and Matsushita. Together we aim to serve consumers in the best possible manner and minimize the inconvenience this issue could cause them."