Honda Also Facing Recall Troubles

Honda Also Facing Recall Troubles

Most public attention pike automakers recently has focused on the recall problems facing Toyota, but Toyota is certainly not the only automaker facing akin troubles. Honda ' s auto recall woes are burgeoning; earlier this extent; 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 utilize to 2001 and 2002 models of the Accord, Public, Crossing, CR - V, Aeronaut and 2002 Acura TL and CL vehicles.
What may prove more troubling for Honda than the total character of cars needing repair is the effect of the potential defect with the airbags in the vehicles. On deployment, excessive pressure can shoot metal shards through the airbag framework, potentially injuring vehicle occupants. The Wall St. Chronicle 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 divers escape injury in a collision is not one likely to set well with Honda owners.
Honda has distanced itself from responsibility for the defectunderlying its airbag recalls, placing the blame on a particular parts manufacturer. Yoichi Hojo, Honda ' s pre-eminent financial officer, told Reuters that the U. S. piece of Japan ' s Takata Corp. deviated from the design cultured by Honda when manufacturing the airbags. Honda is seeking fiscal compensation from Takata.
Because of its perceived foot - dragging in ordering recalls, Toyota is currently the question of close Congressional review. With Honda having issued its first affray of recall notices in November 2008, its aid scuffle in July and its inquest in February, it too may find itself the nut of investigation.
The cost of any auto recall decreases with era; when more vehicles in the model class are retired from the road, the automaker has fewer cars to recall. As a conclusion, delaying a recall may provision cost - reserves for manufacturers.
If a manufacturer knows of defects and delays unbiased force to correct them, however, any reserves could be counteract by punitive damage tributes rendered in product liability lawsuits. Unlike compensatory damages that indemnify injury victims for harm suffered, punitive damages are awarded to punish wrongdoers and discourage future consonant misconduct.