KONGSBERG AUTOMOTIVE (KA) SETTLES RECALL CASE WITH BRP AND TELEFLEX

The settlement concerns a claim filed by BRP at the Superior Court of Quebec amounting to 16 million Canadian dollars for costs incurred by BRP in connection with recall of BRP’s Can-Am Spyder vehicles. The vehicles were recalled as some vehicle owners had experienced problems with the power steering of the vehicle. The steering unit (DPS) was designed by Teleflex but manufactured and sold to BRP by KA.

KA will according to the settlement, after being credited for own costs related to the recall, pay compensation to BRP of less than 20 % of the claim, with $1 million payable up front, already accrued in 2011, and the remainder through future program savings.