Honda Also Facing Recall Troubles

Honda Also Facing Recall Troubles

Most public attention stare automakers recently has focused on the recall problems facing Toyota, but Toyota is certainly not the only automaker facing same troubles. Honda ' s auto recall woes are burgeoning; earlier this bit; its recall encompassing 443, 000 vehicles was expanded to comprise 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 advance to 2001 and 2002 models of the Accord, Governmental, Venture, CR - V, Captain and 2002 Acura TL and CL vehicles.
What may prove more troubling for Honda than the total unit of cars needing repair is the moment of the potential defect with the airbags in the vehicles. On deployment, excessive pressure can shoot metal shards through the airbag fabric, potentially injuring vehicle occupants. The Wall St. Notebook reported that one person has died and 11 were injured in car accidents involving defective Honda airbags.
The sneering of a device intended to increase lessee 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 encumbrance for the defectunderlying its airbag recalls, placing the blame on a particular parts manufacturer. Yoichi Hojo, Honda ' s sans pareil fiscal officer, told Reuters that the U. S. department of Japan ' s Takata Corp. deviated from the design favorable 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 belief of earnest Congressional peek. With Honda having issued its first scrimmage of recall notices in November 2008, its aid confrontation in July and its inquiry in February, it too may find itself the puzzle of investigation.
The cost of any auto recall decreases with present; when more vehicles in the model class are retired from the road, the automaker has fewer cars to recall. As a end, delaying a recall may add cost - savings for manufacturers.
If a manufacturer knows of defects and delays impartial functioning to correct them, however, any savings could be counteract by punitive damage credit rendered in product liability lawsuits. Unlike compensatory damages that retrieve injury victims for harm suffered, punitive damages are awarded to punish wrongdoers and discourage future analogous misconduct.