If things go poorly for Takata financially in the wake of its airbag recall, there's a small possibility that the company might need financial assistance from the affected automakers. After all of the trouble, though, Honda has little desire to support the supplier.
Fiat Chrysler, Honda And Toyota Re-Recall Models From The Early 2000s
Fiat Chrysler Automobiles, Honda and Toyota will recall 2.1 million vehicles built in the early 2000s for airbags that could deploy unexpectedly. These vehicles had previously been recalled, but the National Highway Traffic Safety Administration has found that they are still defective.
Honda is setting aside about $425 million to pay for Takata airbag inflator recall-related costs. The change drops the company's profit forecast to about $6.1 billion for the fiscal year. Also, there's a possibility that another death might be linked to the faulty parts.
Since Takata has decided not to take the lead concerning potential issues with its airbag inflators, the automakers have. Perhaps that's unsurprising, since it's the automakers, not Takata, that will take a beating on the dealership floor if consumers decide its models are a health hazards. The Detroit News reports that Toyota, Honda, General Motors, Ford, Chrysler, Mazda, BMW, Nissan, Mitsubishi and Subaru met in a hotel conference room near the Detroit Metropolitan Airport last week to sort ou
Air bag inflators could rupture when, spraying metal fragments at occupants
While Honda already announced plans to take its front driver's side Takata airbag inflator recall nationwide, the automaker has now officially reported on the number of affected vehicles and the specific models in need of repair.
While Honda already announced plans to take its front driver's side Takata airbag inflator recall nationwide, the automaker has now officially reported on the number of affected vehicles and the specific models in need of repair. The expanded campaign covers an estimated 5.4 million units across the US, including those already being fixed under the previous regional actions. That number is an expansion of the five million units initially reported by NHTSA.
Takata is fighting against US regulators over whether to expand its airbag inflator recall nationwide, but the affected automakers are continuing to broaden their own campaigns to get these vehicles fixed. Honda is the first company to take the bold move of partnering with another supplier for its replacement parts. It just announced plans to work with Autoliv to create components for models needing repaired in the US.
The impact of 2014 – henceforth known as Year of the Recalls – will have long-ranging consequences on the auto industry. One of the biggest changes, though, might not be in the way manufacturers inform the government of pending recalls or in the way Uncle Sam punishes automakers that violate its rules, but in the ability to sell cars with pending recalls. And strangely enough, the charge is being led by an automaker.