Samsung Shares Suffer In The Stock Market Due To Washing Machine Recall

You may have heard of Tesla recalling its vehicles or Boeing recalling its jets for technical malfunctions. But it would come as a huge surprise if you were to hear that a company is recalling its washing machines.

Samsung Recalls Washing Machines

Yes, Samsung has reportedly recalled its washing machines due to technical malfunctions that are leading to fire hazards.

So if you have recently purchased a washing machine from Samsung, there may be a possibility it may end up being a faulty one. It may lead to a fire causing you a great loss.

The Consumer Product Safety Commission of the United States made an announcement regarding the same concern.

The South Korean electronics giant’s officials were also accompanying the US Commission over the announcement on December 22.

Both entities made a collective announcement confirming that Samsung is in the process of recalling its washing machines.

The company officials confirmed the reason for recalling the washing machines. They revealed that the newer versions of their washing machines have a short-circuit problem.

As a result, there is a high possibility that the washing machines may end up getting overheated. Eventually, short-circuit and overheating can cause a fire inside the washing machines.

Over 660,000 Washing Machines to be recalled

The officials at the South Korean electronics giant have confirmed that they will be recalling over 660,000 washing machines. These are not just ordinary machines but the top-leading ones in the market.

Samsung started to look into the matter just as the CPSC took the matter up to the company. The CPSC report confirmed that more than 50 reports had been filed pertaining to the same issue with the machines.

The report confirmed that the cases involved overheating, melting, smoking, and in some cases, a fire that was caught by the washers.

As a result of the fires, it was not just the washing machines that were damaged, the consumers’ properties also ended up getting burnt.

People have shared their concerns over the matter and Samsung has taken note of this. The company will soon initiate the recall and as a result, it will bring in all the faulty washing machines.

It will take a look at all of the washing machines to see what may have caused short circuits, and eventually, damage to the properties and the washing machines.

The report shared by the CPSC has confirmed that out of the 50+ complaints filed, 10 cases involved damage to the machine and to the property.

Even people have gotten injured due to the burning cases and they found it difficult to breathe as well. This is another major concern for the company that the people would end up losing more than just their washing machines.

Major Sellers of the Washers

Samsung has announced the washers that will be covered under the recall, plus the retailers that have sold them.

The major retailers of the washers include Lowe’s Home Depot, Costco, and Best Buy. Other local Samsung dealers have also sold the potentially defective washers to consumers throughout the US.

Samsung revealed that even the consumers who purchased the washers through their Samsung.com platform will have their washers recalled as well.

The washing machines to be recalled are the ones from June 2021 until December 2022. The prices for the washers ranged from $900 to $1,500.

Samsung has also confirmed the models of the washers they will be recalling. These models include WA55A, WA54A, WA51A, WA50B, and, WA49B.

These washers had been sold in ivory, champagne, black, and white colors.

Samsung has also provided clear instructions to the consumers so they do not find it difficult to confirm if their washer is part of the recall or not.

Although Samsung has tried handling the situation, the shareholders know it is going to be a difficult situation for the company. In the latest trading session, Samsung’s shares dipped 1.69%.