Beautiful 41,239 Mile 1989 Honda Prelude 2.0 Si Near Perfect Condition One Owner on 2040-cars

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British automakers take costly precautions as Brexit 'no deal' fears grow

LONDON — Carmakers in Britain have triggered some Brexit contingency plans, such as certifying models in the EU, and are working on redrawing production schedules and stockpiling more parts to defend against any loss of unfettered trade after Brexit. The moves are aimed at ensuring plants, which rely on the just-in-time delivery of tens of thousands of components, can keep operating after Brexit on March 29, but will add costs and bureaucracy which could risk their long-term viability. London and Brussels hope to agree a deal by the end of the year to avoid tariffs and trade barriers, but Prime Minister Theresa May's proposals have been criticized by both Brexiteers, who want a cleaner break from the bloc, and the European Union. McLaren Automotive is looking at having its cars certified by both a British and an EU agency to smooth sales. It is also planning to stockpile critical components and change shipments into the EU around Brexit if there is disruption. "I will sell a little more in January and February and plan to pick the volume up in May and give us a leaner period through the change point," Chief Executive Mike Flewitt told Reuters. BMW, which said last week it would move the annual summer-time shutdown of its British Mini plant next year to April, is looking for lorry parking areas and warehousing on both sides of the channel and is seeking to sign contracts to lease certain locations, a spokesman said. It is also investing in IT systems to handle any new red tape as carmakers estimate tens of thousands of new documents could be needed if tariffs and customs are imposed. The German carmaker's Brexit plans are costing millions of pounds, a source familiar with the matter told Reuters. But Honda, which builds 10 percent of Britain's 1.67 million cars at its Swindon plant in southern England, is not in the market to buy "huge amounts of warehousing space," its Europe boss Ian Howells told Reuters. "It's been a very precise calculation or estimation of what components need to be brought in," he said, adding the firm could also alter its output to sell more into the EU at the start of next year. Waste of money? Many British carmakers have also asked suppliers to look into how they would handle delays at ports, executives told Reuters, as thousands of parts, engines and finished models move between Britain and the continent every day.

Takata airbags were adopted in late 1990s to save a few dollars per vehicle

According to a new report from The New York Times, General Motors started using airbags supplied by Takata in the late 1990s as a cost-saving measure even after receiving warnings about their safety. Takata's airbag modules were reportedly 30-percent cheaper than its competitors' offerings. GM approached Autoliv, which until that time had been its main airbag supplier, to see if it could offer a competitively priced alternative to Takata. Autoliv tested Takata's airbag inflator and found that it was unsafe, according to scientists who worked for the supplier at the time. Chris Hock, who until recently still worked for Autoliv, said the inflator "turned it into shrapnel" when tested. GM was subsequently warned by Autoliv that Takata's ammonium nitrate inflators were potentially dangerous. Still, "General Motors told us they were going to buy Takata's inflaters unless we could make a cheaper one," said Linda Rink, who served as a senior scientist at Autoliv at the time. A spokesperson for General Motors told The Times that it would be inappropriate to comment on discussions that "occurred two decades ago between Old GM and a supplier." So far, no Takata-supplied airbags have ruptured in an accident, and GM was far from the only automaker to make a switch to Takata airbags in order to save money. A total of 64 million airbags have so far been recalled from nearly every automaker selling vehicles in America. A spokesperson from Honda said in a statement to The Times that "There was no industry understanding in the late 1990s" that ammonium nitrate airbag inflators were risky. The majority of deaths linked to Takata airbags were in vehicles built by Honda. Takata still produces airbag inflators that use an ammonium nitrate compound, despite the devices being blamed for at least 14 deaths. Click here for NHTSA's dedicated site on open Takata recalls. Related Video: News Source: The New York TimesImage Credit: Joe Skipper / Reuters Government/Legal Recalls GM Honda Safety autoliv

Honda charged another $363 million over Takata airbags

The Takata airbag recall is growing increasingly expensive for Honda. In the latest hit to the automaker's bottom line, the company is revising the expected costs of its global safety campaigns by an additional 44.8 billion yen ($363 million) after the massive expansion in May. Months ago, Honda announced that it had set aside 50 billion yen ($425 million at the time) to meet the predicted expenses. According to Automotive News, due to the rather arcane laws of accounting, these new costs will actually be applied to the fiscal year that ended on March 31, rather than the current one. Honda's revised earnings will be announced in late June. The company previously reported an operating profit of 651.7 billion yen ($5.3 billion), which was down 13 percent from the previous year. There has been no change to planned dividends for investors. In the US, Honda and Acura have a total of about 6.28 million vehicles in need of a replacement airbag inflator, and the automaker says about two million of those are already repaired. In addition to the Takata campaign, the company has faced other financial setbacks during this calendar year. For example, in early January, it received a $70 million fine from the National Highway Traffic Safety Administration for failing to report 1,729 cases of injuries or deaths over 11 years. As part of a strategy to improve quality globally, Honda cut back its global sales forecasts for the coming year, and it also decided not to make any volume predictions through 2017. To: Shareholders of Honda Motor Co., Ltd. From: Honda Motor Co., Ltd. 1-1, Minami-Aoyama 2-chome, Minato-ku, 107-8556 Tokyo Takanobu Ito President and Representative Director Notice of Events after the Reporting Period Regarding Product Warranty Expenses Honda Motor Co., Ltd. (the "Company") and its consolidated subsidiaries have been conducting market-based measures in relation to airbag inflators, such as product recalls and a Safety Improvement Campaign. Due to factors arising since May 2015 such as an expansion of the scope of these market-based measures based on an agreement between our supplier and the U.S. National Highway Traffic Safety Administration, a change has arisen in the estimate relating to product warranty expenses. The amount of product warranty expenses now expected to be incurred is 44,800 million yen.