Takata airbag recall causes Honda loss


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Japanese carmaker Honda made an unexpected fourth quarter loss after going through greater Quality-associated costs for remembers of its automobiles that use potentially deadly Takata airbags.

Quality prices rose virtually 4-fold in consequence.

Honda made a loss of Ninety Three.4bn yen ($859.56m), compared with the One Hundred Fifteen.35bn profit anticipated by using analysts.

The Corporate mentioned full-12 months results included 267bn yen extra in costs than its unique estimate.

Honda, which is Japan’s third-greatest automobile maker, put aside a complete 436bn yen for airbag-related costs remaining yr, when put next with 120bn yen the yr earlier than.

Some 50 million cars that use Takata airbags had been recalled globally after they were blamed for at least 11 deaths, totally on automobiles made through Honda, the provider’s biggest consumer.

US authorities said earlier this month that Takata should file new defect studies masking 35-Forty million additional inflators to be able to lead to remembers by way of automakers.

Takata is expected to issue a record on Sixteen May Just outlining which automobiles are affected.

Honda mentioned that when it receives that data it is going to “straight away begin opting for if Honda vehicles should be integrated in the first-stage take into account.” It mentioned it should have to take into account up to 21 million extra autos on top of the 30 million it has already recalled.

US regulators imagine the volatile chemical used in the inflators, ammonium nitrate, can lead to airbags to blow up with extreme force.

Globally, 12 car makers are affected, with Japan’s Honda being the worst hit.

Takata has mentioned some airbag inflators explode with too much power and spray metal shrapnel into the car.


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