In light of a couple of recent news stories about Li battery fires while charging this is cheap protection for Pedego. Much better than waiting for CPSC to do the recall. I noticed that one reader commented that he thought 5K batteries over 3 years didn't sound like a lot of bikes, but Pedego really emphasizes rentals in their business plan with dealers which may be reflected in those numbers. Also, the total annual sales of ebikes in the US is still small compared to regular bikes, just barely 120K.
Yes, 5000 batteries; however, Pedego is probably paying closer to $250-300 per unit given that they're manufacturing in bulk. Still, not a bill I would want to pay. Its much cheaper for them to decide to do the recall as a company than for CPSC demand it; that would be far more devastating.
From a corporate standpoint, nice thing about a recall is not everyone responds. Bike gets sold, people ignore the letter, people never get around to it... Meanwhile the company has taken steps to protect themselves from lawsuits.