Honda expects to spend $363mln on recalling cars with Takata airbags

Honda expects to spend $363mln on recalling cars with Takata airbags

PanARMENIAN.Net - The Japanese carmaker Honda has said it expects to spend almost 45bn yen ($363mln) on recalling cars fitted with potentially dangerous airbags, BBC News reports.

The firm has been forced to recall millions of vehicles worldwide, to replace faulty airbag inflators made by automotive parts manufacturer, Takata. Six deaths have been linked to Takata airbags - all in Honda cars.

Honda says the costs will not affect its dividend or profit forecasts for the current year.

In April, Honda cut its profit growth forecast after missing the mark last year on recalls and other issues.

Several car manufacturers, including Toyota, Nissan, Daihatsu, Mazda and Mitsubishi, have recalled models fitted with Takata airbags, which have been connected to more than 100 injuries.

The fault has led to 34 million cars being recalled in the U.S., the biggest auto-safety recall in U.S. history, and Takata faces multiple class action lawsuits and criminal and regulatory investigations in North America.

Globally, the number of vehicles affected is thought to be 53 million.

Investigations found that Takata airbag inflators were not properly sealed and could be damaged by moisture. Some airbags burst under pressure, spraying shrapnel inside the car.

Some scientists suspect that the ammonium nitrate propellant may have been part of the problem, because it can become unstable over time, particularly in extreme heat and humidity.

Takata is working to replace all the faulty airbag kits.

 Top stories
Mher Grigoryan added that the government will ensure that the borrowed funds are spent efficiently.
Wizz Air Abu Dhabi will be regularly flying from the Armenian capital of Yerevan to Abu Dhabi, UAE.
The ruble was trading at a low of 74.9 to $1 on March 9 morning, after another wild start to the week for financial markets.
Pashinyan said that raising the efficiency of the fight against corruption will be one of the most important challenges.
Partner news