Honda Also Facing Recall Troubles

Honda Also Facing Recall Troubles

Most public attention slant automakers recently has focused on the recall problems facing Toyota, but Toyota is certainly not the only automaker facing commensurate troubles. Honda ' s auto recall woes are burgeoning; earlier this era; its recall encompassing 443, 000 vehicles was expanded to inject 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 further to 2001 and 2002 models of the Accord, National, Route, CR - V, Flyer and 2002 Acura TL and CL vehicles.
What may prove more troubling for Honda than the total figure of cars needing repair is the priority of the potential defect with the airbags in the vehicles. On deployment, excessive pressure can shoot metal shards through the airbag essence, 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 gibing of a device intended to increase tenant safety harming occupants who might unsimilar escape injury in a collision is not one likely to set well with Honda owners.
Honda has distanced itself from incumbency for the defectunderlying its airbag recalls, placing the blame on a particular parts manufacturer. Yoichi Hojo, Honda ' s unrivaled pecuniary officer, told Reuters that the U. S. moiety of Japan ' s Takata Corp. deviated from the design obliging by Honda when manufacturing the airbags. Honda is seeking pecuniary compensation from Takata.
Because of its perceived foot - dragging in ordering recalls, Toyota is currently the matter of cutting Congressional double o. With Honda having issued its first rumble of recall notices in November 2008, its sustain free-for-all in July and its query in February, it too may find itself the contention of investigation.
The cost of any auto recall decreases with occasion; when more vehicles in the model class are retired from the road, the automaker has fewer cars to recall. As a upshot, delaying a recall may proffer cost - reserves for manufacturers.
If a manufacturer knows of defects and delays logical power to correct them, however, any capital could be offset by punitive damage prizes rendered in product liability lawsuits. Unlike compensatory damages that recover injury victims for harm suffered, punitive damages are awarded to punish wrongdoers and discourage future comparable misconduct.