HEERENVEEN, Netherlands (BRAIN) — Accell Group recently issued a business update to its shareholders and business partners and included an update on its Babboe cargo bike recall over concerns about the structural integrity of its frames.
According to Accell, the recall and repair operation covers 11 countries and North America and includes 95% of the volume of bikes sold. It said the costs are fully covered through shareholder financial support. More than 7,000 bikes have been returned for replacement, with the available stock of nearly 800 bikes being delivered to customers.
More than 2,700 bikes have been inspected.
"We are now starting the new production of replacement cargo bikes to accelerate the replacement rate," Accell said in a release. "Inspections and upgrades of the bikes not subject to the recall have also started in most countries. We aim to have concluded this process by the end of the year, when we can also fully resume sales of Babboe bikes to new customers."
The recall in April followed the Dutch Food and Consumer Product Safety Authority telling Babboe in February to cease selling its bikes for not investigating a series of reported broken frames as required by law.
In June, the U.S. Consumer Product Safety Commission issued a recall of all Babboe models — two-wheeled, three-wheeled, electric, and non-electric cargo models — because "the frames ... can crack and can bend and break, posing a fall hazard to the rider."
Financially, Accell said market conditions are not improving but "the long-term outlook for our business remains positive." Stock levels since the end of the year have decreased with dealer customer sales in key markets increasing, Accell said, adding that in one of its biggest markets — the Netherlands — market share was 24% in April, the highest in four years.
