A cargo bike from the manufacturer Babboe – one of four models that were recalled in Germany at the beginning of March. picture alliance / ANP | Eva Plevier
The cargo bike manufacturer Babboe, a subsidiary of the Accell bicycle group, has come into the sights of Dutch law enforcement authorities.
The Dutch company is suspected of having deliberately concealed safety risks in its own products for years.
The threatened mass recall, which would also affect the German market, among other things, could become a problem for the financially troubled company.
Babboe has been selling cargo bikes for 15 years and claims to be the market leader. But the company currently has no reason to be happy: the Dutch law enforcement authorities are investigating Babboe.
The company is accused of deliberately concealing the safety risks of its own products for years.
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Stop sales and investigations
Babboe is a subsidiary of the Dutch bicycle company Accell and produces cargo bikes. There have been allegations of grievances in the company since February, triggered by the broadcaster’s reporting “RTL News“. On February 14th The Dutch Consumer Safety Authority (NVWA) imposed a sales ban for all of the company’s cargo bikes. Now she has also started an investigation into how from a statement from Accell.
The investigation focuses on defective and unstable bicycle frames, which pose a safety risk in road traffic. Loud “Spiegel“The investigators are also relying on new incriminating material that “RTL News“ published. These include numerous photos, documents and audio recordings. On a recording, a Babboe employee can be heard telling how defective frames were dragged away and hidden before the NVWA officers arrived.
Impact on the German market
The Federal Institute for Occupational Safety and Health had already classified most Babboe cargo bikes as “dangerous” at the end of February, the reported “Manager Magazine”. As the business magazine further reports, in addition to the general sales stop in March, a total of five models were recalled.
In a dealer letter that was available to “Manager Magazin”, Babboe asked its customers to have their bikes checked at the dealer free of charge. A corresponding checklist will soon be sent to dealers.
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Impact on parent company Accell
According to an Accell spokeswoman, Babboe has recalled a total of 15,000 cargo bikes in Germany and the Netherlands alone, writes “Spiegel”. Estimates of the “Financial Daily” have also shown that the costs of the recall in the core markets alone could amount to up to 150 million euros.
It is unclear whether this can be achieved by the indebted company. The “Manager Magazine” reported in mid-March that lenders had lost confidence in the company. Two insiders confirmed that they had already hired consultants to position themselves for a possible debt restructuring.
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