Samsung reaches settlement over ‘exploding’ washing machines

The South Korean consumer goods titan has suffered several blows to its reputation in recent years. (File/AFP)
Updated 12 February 2019
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Samsung reaches settlement over ‘exploding’ washing machines

  • The faulty appliances were recalled in 2016 after reports some of the washers were “exploding”
  • In 2016 it was forced to issue a worldwide recall of its flagship Galaxy Note 7 smartphone over exploding batteries

SEOUL: Samsung Electronics has reached a settlement in a class-action lawsuit over 2.8 million “exploding” washing machines recalled in the US, the South Korean company said Tuesday.
The faulty appliances were recalled in 2016 after reports that the top “can unexpectedly detach from the washing machine chassis during use, posing a risk of injury from impact,” according to The US Consumer Product Safety Commission.
The lawsuit claimed some of the washers were “exploding.”
“Samsung has chosen to settle class-action lawsuits involving top-load washing machines that were subject to a voluntary recall,” Samsung said in a statement, adding the decision was reached to “avoid distraction and expense of litigation.”
The washing machines in question have long been off the market, Samsung said.
Those covered by the settlement may receive benefits ranging from a “rebate, refund or reimbursement of certain expenses, costs, and repairs,” according to the statement.
Samsung said at the time that the recall applied to models built between 2011 and 2016 for “reports highlighting the risk that the drums in these washers may lose balance, triggering excessive vibrations, resulting in the top separating from the washer.”
The South Korean consumer goods titan has suffered several blows to its reputation in recent years.
In 2016 it was forced to issue a worldwide recall of its flagship Galaxy Note 7 smartphone over exploding batteries, costing the firm billions of dollars.
The group’s heir, Lee Jae-yong, was soon after embroiled in a major corruption scandal that ousted South Korean president Park Geun-hye, and he spent nearly a year in jail for bribing her close confidante.
But in just a decade, Samsung has gained considerable ground in the US washing machine market with its share jumping from 1.8 percent in 2008 to 19.8 percent in 2017, according to market research firm TraQline.


Gulf defense spending ‘to top $110bn by 2023’

Updated 15 February 2019
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Gulf defense spending ‘to top $110bn by 2023’

  • Saudi Arabia and UAE initiatives ‘driving forward industrial defense capabilities’
  • Budgets are increasing as countries pursue modernization of equipment and expansion of their current capabilities

LONDON: Defense spending by Gulf Arab states is expected to rise to more than $110 billion by 2023, driven partly by localized military initiatives by Saudi Arabia and the UAE, a report has found.

Budgets are increasing as countries pursue the modernization of equipment and expansion of their current capabilities, according to a report by analytics firm Jane’s by IHS Markit.

Military expenditure in the Gulf will increase from $82.33 billion in 2013 to an estimated $103.01 billion in 2019, and is forecast to continue trending upward to $110.86 billion in 2023.

“Falling energy revenues between 2014 and 2016 led to some major procurement projects being delayed as governments reigned in budget deficits,” said Charles Forrester, senior defense industry analyst at Jane’s.

“However, defense was generally protected from the worst of the spending cuts due to regional security concerns and budgets are now growing again.”

Major deals in the region have included Eurofighter Typhoon purchases by countries including Saudi Arabia and Kuwait.

Saudi Arabia is also looking to “localize” 50 percent of total government military spending in the Kingdom by 2030, and in 2017 announced the launch of the state-owned military industrial company Saudi Arabia Military Industries.

Forrester said such moves will boost the ability for Gulf countries to start exporting, rather than purely importing defense equipment.

“Within the defense sector, the establishment of Saudi Arabia Military Industries (SAMI) in 2017 and consolidation of the UAE’s defense industrial base through the creation of Emirates Defense Industries Company (EDIC) in 2014 have helped consolidate and drive forward industrial defense capabilities,” he said.

“This has happened as the countries focus on improving the quality of the defense technological work packages they undertake through offset, as well as increasing their ability to begin exporting defense equipment.”

Regional countries are also considering the use of “disruptive technologies” such as artificial intelligence in defense, Forrester said.

Meanwhile, it emerged on Friday that worldwide outlays on weapons and defense rose 1.8 percent to more than $1.67 trillion in 2018.

The US was responsible for almost half that increase, according to “The Military Balance” report released at the Munich Security Conference and quoted by Reuters.

Western powers were concerned about Russia’s upgrades of air bases and air defense systems in Crimea, the report said, but added that “China perhaps represents even more of a challenge, as it introduces yet more advanced military systems and is engaged in a strategy to improve its forces’ ability to operate at distance from the homeland.”