Fire Hazard Prompts Recall of Garmin Navigation Devices

Posted 11:11 AM 08/25/10 , , ,
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Garmin
Garmin (GRMN) is recalling 1.25 million personal navigation units because of the potential for fires caused by overheated batteries, the company said Wednesday. Nearly 800,000 of the affected devices were sold in the U.S., it said.

Garmin, the U.S.'s largest maker of such navigation products, said the recall applies to its nüvi brand of devices that have batteries supplied by a third party with specific date codes and certain circuit-board designs. The problem has popped up in fewer than 10 cases, and no injuries have been reported, the Switzerland-based company said.

Garmin has set up a website -- www.garmin.com/nuvibatterypcbrecall -- to help consumers determine if their unit is affected. The company urged consumers not to attempt to remove or service the battery on their own. Instead it asked them to return affected units directly to authorized locations.

In its statement, Garmin said it doesn't expect the recall to take a toll on its earnings, noting that the battery supplier has agreed to share the cost of replacement battery packs and all other costs of the recall program.

Personal navigation device sales accounted for about half of Garmin's total revenue in the last quarter, Reuters reported. The recall could affect future sales, which are already in steep decline because of the rising popularity of navigation-enabled smartphones.

Shares of Garmin were down slightly to $26.50 each in late-morning trading on Wall Street. The stock is down nearly 14% so far this year.
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David Schepp

David Schepp

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Business News Reporter

David Schepp has covered business news for more than a decade at news organizations such as Dow Jones, BBC News and Gannett. His beats have included technology, biotechnology, health care and workplace. He lives in New York's Hudson Valley.

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