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Honda Denies Reports of Recalling of 20 Million More Takata Airbags


05/09/2016


Honda Denies Reports of Recalling of 20 Million More Takata Airbags
After the Nikkei newspaper reported it would recall at least 20 million more of the safety devices made by Takata Corp, Honda Motor Co on Monday said it had not made any announcements on additional air bags recalls.
 
The automaker's additional recall would include the regions of United States, Europe, Asia, Oceania and Latin America, the Japanese newspaper on Sunday reported citing unnamed sources. A massive global recall of potentially deadly airbags was ordered to be expanded further by the U.S. safety regulators last week.
 
However no additional recalls had been announced, said Honda, whose vehicles have been affected by roughly half of the air bag recalls announced so far.
 
Takata airbags have the potential of sending metal shrapnel into vehicles after they run the risk of exploding with excessive force. In addition to more than 100 injuries, the bags have been linked to 10 deaths in the United States and one death in Asia.
  
Automakers will recall another 35 million to 40 million U.S. air bag inflators assembled by the Japanese manufacturer by 2019, the U.S. Transportation Department and Takata had confirmed last week.
 
The latest expansion will add to the more than 50 million airbags recalled to date.
 
A defect that can send metal and plastic shrapnel from the inflator canister hurtling toward drivers and passengers when an airbag is deployed is the primary risk of the air safety bags as the company struggles to deal with the issue.
 
Two more people in Malaysia had died in accidents involving vehicles with Takata-made airbags, Honda has announced last week. But most of the deaths have been in the US.
 
All units that do not contain a substance that keeps explosives in airbags from deteriorating have been ordered to be recalled by the US authorities to Honda as well as other carmakers.
 
The Nikkei daily had reported that by the expansion of the areas of the recall would force the Japanese firm to recall another 20 million airbags or more globally, bringing the total number to more than 50 million.
 
The business newspaper further reported that the latest move by the largest buyer of Takata airbags may prompt other firms to follow suit and the additional cost is estimated at $2.5 billion for Takata.
 
Meanwhile revising its previous estimate for a 5 billion yen profit as costs mount due to a massive global recall of its air bag inflators, Takata Corp warned it would post an annual net loss of 13 billion yen ($120 million) for the past financial year. While the company raised its operating profit estimate by 5 percent to 42 billion yen, Takata also cut its estimates for full-year revenue and recurring profit.
 
After U.S. transport authorities last week announced an additional recall that would affect up to 40 million more air bags manufactured by the company has resulted in enhancement of the recall woes of Takata.
 
(Source:www.reuters.com)