Beko Australia explains product recall situation to Narta members

Current.com.au has obtained the following letter, sent from Beko Australia general manager sales and marketing Paul Reeves to Narta members on 27 March 2013. This letter details Beko’s response to product recall dramas locally and in the United Kingdom. The veracity of the letter has been authenticated.

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(Slight modifications have been made to improve readability)

Dear Members,

As you may be aware there has been some recent local media coverage about an issue with regards to some of our products in the UK, which has resulted in house fires and allegedly the loss of life of some people. The company deeply regrets this tragic situation and any loss of life that may have occurred.

The information contained in articles in the UK media about Beko product issues has been in the public domain for some time. Despite Beko UK supplying the UK media with a full explanation of the extensive corrective action programs that the company have undertaken, some newspapers have taken a one-sided approach which has resulted in an unbalanced analysis of the situation.

Here in Australia, during the course of Monday and Tuesday this week, we have issued a statement to key media, which provided them with clarification on this and what Beko Australia’s position is in this regard.

The product issue that we have identified here relates specifically to our 7kg condenser dryer. We have identified eight units which are all located in Victoria. The issue is specifically with a faulty capacitor, which has been supplied by a third party manufacturer. Our factory has rectified the situation by changing the component and relocating the position within the product.

The [media] statement we … issued this week reads as follows:

The safety of our customers is our number one priority and we investigate every incident that is reported to us. Where issues are identified with Beko products we act quickly to correct the issue.

The Beko cooking and refrigeration products sold in the UK which have been the subject of media coverage in that country are not sold by Beko in Australia.

Due to an issue with a part supplied by another manufacturer there may be a fault with 7kg condenser drier (DCU7330X) under one very particular set of circumstances.

We have identified the eight people who have purchased this dryer in Australia, all of whom live in Victoria, and are in process of recalling the appliance so it can be replaced.

We have more detailed information for consumers on our website (www.beko.com.au), but anyone with any concerns or questions can contact Beko on 1300 282 356.

As mentioned in the statement to the media, we have identified the locations of the eight driers and our service team is currently working on replacing these products. We expect to replace all of these eight products, which will eliminate any potential threat.
We have also placed a notice on our website, which provides full details to consumers to respond to. Please refer to [this webpage].

I would also like to point out that we have advised the ACCC, who have placed a recall notification on their website. Please refer to this link for the detailed information.

The UK products that have allegedly caused the fires were Frost-free Fridge Freezers manufactured from 2000 to 2006, as well as Gas Cookers manufactured before 2009. In both cases, Beko UK undertook a recall action and achieved recall rates of 83 per cent and 60 per cent respectively. This is 3-to-4 times more than the industry average.

The ongoing press is leaking deliberately from a law firm in the UK who is handling litigation on behalf of the family who unfortunately lost a loved one. The law firm are well known for their actions and methods of gaining maximum exposure about an issue in an effort to receive a litigation pay out.

Whilst the loss of life is tragic under any circumstances, we have definitely taken huge steps to put maximum effort into recalls and changing production processes.

We will unfortunately, continue to see articles leaked by the UK lawyers in an effort to soften us up for the compensation which incidentally, although mentioned in … [news articles], is totally incorrect.

We have had NO demand on us for a compensation payment although we are sure it will come.

Rest assured, [we] will continue to focus our efforts on building the Beko brand and at the same time ensuring our products of the highest standards and quality.

If you have any questions or would like further clarification please do not hesitate to contact myself or [managing director] Mike Goadby.

Kind regards,

Paul Reeves
General Manager Sales and Marketing

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