Sustainable Brand Setbacks: Tesla Roadsters Recalled, SunChips Packaging Shelved

Tesla voluntarily recalled Roadster models 2.0 and 2.5 when the company heard from a customer with this problem:

low voltage auxiliary cable in [the] vehicle chafed against the edge of a carbon fiber panel in the vehicle causing a short, smoke and possible fire behind the right front headlamp of the vehicle. This issue [involved the] 12V low voltage auxiliary cable and… not the main battery pack or main power system.

Tesla’s stock price, which remained steady immediately after the Oct. 1st recall, dipped more than 3% within the week as media and industry analysts discussed the Tesla Roadsters’ fire risk along with the company’s looming expenses and competitive outlook.

Tesla’s chief executive Elon Musk will soon have to cut checks for: recruiters to bring in hundreds of new engineers and their salaries; continued work on a new, Model S sedan; and production of new vehicles along with fixes for the recalled Roadsters, which numbered fewer than 500 vehicles.

Shortly after the smokey Roadster recall, PepsiCo Frito-Lay announced it would scale back the use of plant-based, biodegradable plastic packaging for SunChips due to complaints about the bags making noise.

All but one of the flavors of SunChips will now be sold in “traditional” plastic sacks instead of the non-petroleum, compostable stuff. That’s at least until the company comes up with or purchases another green alternative.

Back in April 2009, when Sun Chips introduced the biodegradable bags, the company ran extensive print, TV and digital advertising touting the green initiative (as MediaPost reported then). Now, PepsiCo Frito-Lay seems to blame the bags’ noise for the widely reported 11% sales decline in SunChips over the last 52 weeks.

Alexis Madrigal, a writer for The Atlantic went so far as to lament how much capital, human and otherwise, was invested in the SunChips sustainable packaging effort in the first place:

Environmentalists will be watching both brands, hoping for improved sales and stock prices, and case studies that prove sustainable business can also be profitable and competitive, and these setbacks were just a price paid by pioneers.