Honda will recall an additional 21 million vehicles related to the Takata airbag issue, Honda executive, vice president Tetsuo Iwamura told The New York Times. The announcement is likely part of the recall expansion announced by the National Highway Traffic Safety Administration (NHTSA) earlier this month.
The NHTSA is expanding the Takata airbag inflator recall to include an additional 35-40 million vehicles in the U.S.That brings the total number of affected cars in the U.S. to 68.8 million or more than a quarter of the cars on the road. Iwamura didn’t specify what percent of the additional 21 million vehicles were located in the U.S. The announcement brings Honda’s total recall tally to 51 million vehicles globally.
Although Takata sells airbags and inflators to several automakers, Honda is the supplier’s biggest customer and has been hit hardest during the recall. The Japanese automaker has set aside an additional $2.45 billion to cover expenses related to the Takata recall. That brings Honda’s total recall expenses to a little over $4 billion for its financial year that ended in March. That also lowered the company’s net profit to less than $3.2 billion for last year, The New York Times reports.
A design defect in the Takata airbag inflators can explode with too much force sending shrapnel into the vehicle passenger compartment. The airbag inflators have been linked to more than 100 injuries in the U.S. and 11 deaths worldwide. As the supplier’s biggest customer, Honda vehicles account for the majority of deaths. While automakers hope the supplier will reimburse them for their recall expenses, Takata has just announced a major restructuring and faces possible bankruptcy.
SOURCE:- Mototrend