Citing industry sources, a report out of South Korea today claims that the Samsung Group’s battery affiliate Samsung SDI has put its Galaxy Note 7 battery compensation plan for sister company Samsung Electronics on hold as the two affiliates have yet to find a middle ground for a settlement. The two companies have still not reached a decision on settlement money.
Samsung SDI didn’t really have a good year in 2016. It suffered significant losses due to the Galaxy Note 7 debacle and also had to deal with slow sales of automotive batteries in China. It posted an operating loss of 926.3 billion won or $826.90 million last year.
Samsung Electronics announced the result of its lengthy probe into the Galaxy Note 7 fiasco back in January this year. The company confirmed that the battery was at fault and that it was going to seek compensation from its battery suppliers which include Samsung SDI and China’s ATL.
Reports suggest that Samsung SDI has earmarked more than 95 billion won to be paid as compensation for the faulty batteries. It supplied 70 percent of all batteries for the Galaxy Note 7. It’s unclear what figure both companies will agree on but it’s expected that Samsung Electronics will lower the settlement amount given the close ties between both companies.
Samsung SDI declined to comment on the matter while pointing out that the talks are still ongoing.
Via
