Honda Also Facing Recall Troubles

Honda Also Facing Recall Troubles

Most public attention survey automakers recently has focused on the recall problems facing Toyota, but Toyota is certainly not the only automaker facing like troubles. Honda ' s auto recall woes are burgeoning; earlier this while; its recall encompassing 443, 000 vehicles was expanded to take in 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 resort to to 2001 and 2002 models of the Accord, Public, Wandering, CR - V, Co-pilot and 2002 Acura TL and CL vehicles.
What may prove more troubling for Honda than the total amount of cars needing repair is the signification of the potential defect with the airbags in the vehicles. On deployment, excessive pressure can shoot metal shards through the airbag structure, potentially injuring vehicle occupants. The Wall St. Daybook reported that one person has died and 11 were injured in car accidents involving defective Honda airbags.
The scorn of a device intended to increase resident safety harming occupants who might contrastive escape injury in a collision is not one likely to set well with Honda owners.
Honda has distanced itself from culpability for the defectunderlying its airbag recalls, placing the blame on a particular parts manufacturer. Yoichi Hojo, Honda ' s unequaled monetary officer, told Reuters that the U. S. segment of Japan ' s Takata Corp. deviated from the design considerate by Honda when manufacturing the airbags. Honda is seeking financial compensation from Takata.
Because of its perceived foot - dragging in ordering recalls, Toyota is currently the controversy of diligent Congressional eyeful. With Honda having issued its first clash of recall notices in November 2008, its sustain riot in July and its catechism in February, it too may find itself the matter of investigation.
The cost of any auto recall decreases with life; when more vehicles in the model class are retired from the road, the automaker has fewer cars to recall. As a outcome, delaying a recall may afford cost - reserves for manufacturers.
If a manufacturer knows of defects and delays fair enterprise to correct them, however, any resources could be offset 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 dissuade future parallel misconduct.