Mexican Media Brands
Honda’s Recall Costs Could Balloon to $2.3 Billion
Massive recalls to replace Takata Corp. airbag inflators that could explode could hike Honda Motor Co.’s expected quality-related costs by one-third this year, The Nikkei predicts.
#regulations
Share
Massive recalls to replace Takata Corp. airbag inflators that could explode could hike Honda Motor Co.’s expected quality-related costs by one-third this year, The Nikkei predicts.
Honda forecast in April that its recall spending would be in the low 200 billion-yen (about $1.7 billion) for the fiscal year ending next March 31. Now the total is likely to reach 280 billion yen, according to the newspaper, which cites no sources.
A dozen carmakers are recalling roughly 40 million vehicles worldwide to replace the Takata devices, which appear to become unstable after lengthy exposure to heat and moisture. The Nikkei says nearly 25 million of the affected vehicles are Honda models.
The carmaker has been Takata’s largest customer. But Honda declared in early November it will abandon the supplier after U.S. regulators fined Takata $70 million for manipulating test data and hiding its problems from customers and safety agencies.
RELATED CONTENT
-
Things to Know About Cam Grinding
By James Gaffney, Product Engineer, Precision Grinding and Patrick D. Redington, Manager, Precision Grinding Business Unit, Norton Company (Worcester, MA)
-
Choosing the Right Fasteners for Automotive
PennEngineering makes hundreds of different fasteners for the automotive industry with standard and custom products as well as automated assembly solutions. Discover how they’re used and how to select the right one. (Sponsored Content)
-
Increasing Use of Structural Adhesives in Automotive
Can you glue a car together? Frank Billotto of DuPont Transportation & Industrial discusses the major role structural adhesives can play in vehicle assembly.
