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.
DOT Secretary Says Supplier Is 'Bad Actor' On Safety Landscape
Federal investigators said Friday that global automotive supplier Takata has not cooperated with a problem into the company's exploding airbags, which are responsible for killing at least five motorists and injuring dozens more.
Transportation Secretary: Airbag Supplier's Conduct Is 'Unacceptable'
Global automotive supplier Takata has not cooperated with an investigation into exploding airbags responsible for killing at least five motorists and injuring dozens more, federal authorities said Friday.
In a bid to get back quality control back on track, Honda is dropping its global forecast of six million vehicles for 2017. Last year, the company was plagued by the huge Takata airbag recall in the US and several problems in Japan.
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.
The US Department of Justice is pursuing a case against an executive from Japanese parts supplier Takata for alleged price fixing of seatbelts from 2005 to 2011. If found guilty, he could face a maximum punishment of 10 years behind bars and a $1 million fine.
With tens of millions of vehicles recalled, Takata has made several changes at its head office, including the resignation of its president, the promotion of its chairman and the appointment of several former US cabinet secretaries.
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