Honda Also Facing Recall Troubles

Honda Also Facing Recall Troubles

Most public attention look automakers recently has focused on the recall problems facing Toyota, but Toyota is certainly not the only automaker facing equaling troubles. Honda ' s auto recall woes are burgeoning; earlier this past; its recall encompassing 443, 000 vehicles was expanded to add 378, 000 additional vehicles. This recall is expected to cost Honda $2. 2 to $3. 3 million.
In the United States, the latest round of Honda recall notices profit by to 2001 and 2002 models of the Accord, Federal, Airing, CR - V, Co-pilot and 2002 Acura TL and CL vehicles.
What may prove more troubling for Honda than the total character of cars needing repair is the relevance of the potential defect with the airbags in the vehicles. On deployment, excessive pressure can shoot metal shards through the airbag cloth, potentially injuring vehicle occupants. The Wall St. Journal reported that one person has died and 11 were injured in car accidents involving defective Honda airbags.
The decision of a device intended to increase inhabitant safety harming occupants who might incomparable escape injury in a collision is not one likely to set well with Honda owners.
Honda has distanced itself from boundness for the defectunderlying its airbag recalls, placing the blame on a particular parts manufacturer. Yoichi Hojo, Honda ' s pre-eminent monetary officer, told Reuters that the U. S. moiety of Japan ' s Takata Corp. deviated from the design approved by Honda when manufacturing the airbags. Honda is seeking monetary compensation from Takata.
Because of its perceived foot - dragging in ordering recalls, Toyota is currently the concern of concentrated Congressional once-over. With Honda having issued its first free-for-all of recall notices in November 2008, its help conflict in July and its third degree in February, it too may find itself the puzzle of investigation.
The cost of any auto recall decreases with second; when more vehicles in the model class are retired from the road, the automaker has fewer cars to recall. As a payoff, delaying a recall may keep cost - resources for manufacturers.
If a manufacturer knows of defects and delays unbiased motion to correct them, however, any savings could be offset by punitive damage honours rendered in product liability lawsuits. Unlike compensatory damages that indemnify injury victims for harm suffered, punitive damages are awarded to punish wrongdoers and stop future twin misconduct.