MONTREAL – Dorel Industries’ (TSX:DII.B) reputation took another hit Friday after transportation safety agencies in Canada and the United States disclosed a “potential problem” with nearly 30,000 infant car seats.
The problem involved a faulty spring that could cause Maxi-Cosi Mico infant seats made in 2008 to not lock fully when installed into their removable base.
With no consumer complaints or reported injuries, the recall on its own is a hiccup for the world’s largest car seat manufacturer.
But, it is the latest of a half dozen recalls of seats, cribs and baby gates over the past few months has raised questions about Dorel’s design and manufacturing of children’s products.
“It’s not like we have a systemic quality control issue, we don’t,” spokesman Rick Leckner said in an interview.
The Montreal-based company uses hundreds of quality control people, including 200 in China, to ensure its products are safe. However, occasionally a few problems slip through, Leckner said.
He said Dorel works hard to make sure that its products are as fool proof as possible, especially because they involve the safety of children.
Industry observers fear the recall could spook parents from purchasing Dorel products and have a cumulative effect on the company’s reputation.
It’s a risk that Dorel is aware of as it reassures parents while attempting to avoid undue panic when it sends recall notifications.
“You’re reputation is your No. 1 asset and you have to do everything you can to protect it and it starts with making the best possible product,” Leckner.
He said the industry also has to do a better job explaining to parents about the proper assembly and use of products to prevent injuries.
Testing by Transport Canada found that the seat could separate from its base during a collision.
It said the car seats, manufactured in Columbus, Ind., between March 8 and June 28, 2008, can still be used but owners should check that a release handle is pushed in properly and fully locked.
Dorel will notify registered owners and send a repair kit which includes two replacement springs.
The recall involves less than 7,000 seats in Canada and 22,850 in the United States. The company will repair the 400 seats still sitting on store shelves.
“Fortunately there have been no incidents at all, no injuries and this is purely a precautionary move that has been taken,” said Leckner.
Dorel shares closed at $31.29, up 11 cents Friday on the Toronto Stock Exchange.
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