Honda Also Facing Recall Troubles

Honda Also Facing Recall Troubles

Most public attention glad eye automakers recently has focused on the recall problems facing Toyota, but Toyota is certainly not the only automaker facing relating troubles. Honda ' s auto recall woes are burgeoning; earlier this week; its recall encompassing 443, 000 vehicles was expanded to count 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, Itinerary, CR - V, Flyer and 2002 Acura TL and CL vehicles.
What may prove more troubling for Honda than the total unit of cars needing repair is the gist of the potential defect with the airbags in the vehicles. On deployment, excessive pressure can shoot metal shards through the airbag cloth, potentially injuring vehicle occupants. The Wall St. Periodical reported that one person has died and 11 were injured in car accidents involving defective Honda airbags.
The ridicule of a device intended to increase resident safety harming occupants who might deviating escape injury in a collision is not one likely to set well with Honda owners.
Honda has distanced itself from albatross for the defectunderlying its airbag recalls, placing the blame on a particular parts manufacturer. Yoichi Hojo, Honda ' s tops capital officer, told Reuters that the U. S. installment of Japan ' s Takata Corp. deviated from the design charming by Honda when manufacturing the airbags. Honda is seeking money compensation from Takata.
Because of its perceived foot - dragging in ordering recalls, Toyota is currently the concern of strong Congressional beholding. With Honda having issued its first fracas of recall notices in November 2008, its help tiff in July and its inquest in February, it too may find itself the belief of investigation.
The cost of any auto recall decreases with infinity; when more vehicles in the model class are retired from the road, the automaker has fewer cars to recall. As a arrangement, delaying a recall may cater cost - funds for manufacturers.
If a manufacturer knows of defects and delays reasonable activity to correct them, however, any reserves could be indemnify 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 discourage future similar misconduct.