Honda Also Facing Recall Troubles
Most public attention stare automakers recently has focused on the recall problems facing Toyota, but Toyota is certainly not the only automaker facing homologous troubles. Honda ' s auto recall woes are burgeoning; earlier this allotment; its recall encompassing 443, 000 vehicles was expanded to number 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 exercise to 2001 and 2002 models of the Accord, National, Circuit, CR - V, Aviator and 2002 Acura TL and CL vehicles.
What may prove more troubling for Honda than the total quantity of cars needing repair is the purport of the potential defect with the airbags in the vehicles. On deployment, excessive pressure can shoot metal shards through the airbag textile, potentially injuring vehicle occupants. The Wall St. Notebook reported that one person has died and 11 were injured in car accidents involving defective Honda airbags.
The sarcasm of a device intended to increase resident safety harming occupants who might incommensurable escape injury in a collision is not one likely to set well with Honda owners.
Honda has distanced itself from pledge for the defectunderlying its airbag recalls, placing the blame on a particular parts manufacturer. Yoichi Hojo, Honda ' s matchless budgetary officer, told Reuters that the U. S. bit of Japan ' s Takata Corp. deviated from the design courteous by Honda when manufacturing the airbags. Honda is seeking financial compensation from Takata.
Because of its perceived foot - dragging in ordering recalls, Toyota is currently the contention of close Congressional glimpse. With Honda having issued its first scrimmage of recall notices in November 2008, its sustain fight in July and its feeler in February, it too may find itself the theory of investigation.
The cost of any auto recall decreases with trick; when more vehicles in the model class are retired from the road, the automaker has fewer cars to recall. As a event, delaying a recall may stake cost - assets for manufacturers.
If a manufacturer knows of defects and delays fair bag to correct them, however, any capital could be counteract 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 dissuade future resembling misconduct.
