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New death linked to Takata airbag crisis, Honda recalls 170k vehicles overseas

The safety crisis surrounding Takata's exploding airbags continues to expand. In the latest revelation, Honda confirms another death linked to the faulty parts, and the company is expanding its recall of the components. However, none of the newly added vehicles are in the United States.
With the confirmation of this report, there are now five deaths linked to the faulty airbags. According to The New York Times, a pregnant woman in Malaysia was killed on July 27 in a 2003 Honda City when she crashed into another vehicle, and the inflator ruptured. This was the first announced case outside of the US.
The faulty part in the woman's car was reportedly made at a now-closed Takata factory in Georgia, according to the NYT, and it's the first known example from that location. In response, Honda recalled about 170,000 vehicles in Europe and Asia to replace the potentially bad inflators. The latest campaign brings the total number of recalled vehicles worldwide to around 14.3 million units.

Honda sees sales up but profit sliding 16 percent in 2017-18

TOKYO - Honda forecasts a 16 percent fall in operating profit for the current financial year as the Japanese automaker sees higher auto sales being offset by a stronger yen and research-and-development costs. Japan's No. 3 automaker said it expects an operating profit of 705 billion yen ($6.34 billion) in the current FY2018, down from 840.7 billion yen posted in the fiscal year just ended, and lower than an average estimate of 850.8 billion yen from 23 analysts polled by Thomson Reuters I/B/E/S. It sees a 14 percent slide in net profit to 530.0 billion yen this year, down from 616.5. Honda's projections are based on a forecast that the yen will average 105 yen to the U.S. dollar through next March, stronger than the 108 yen rate in the year just ended.BUT CAR SALES ARE UP At the same time, there's good news as Honda expects its global vehicle sales to edge up 1 percent to 5.08 million this year, bolstered by growth in Asian sales to 2.06 million units, beating out North America to become Honda's top market as more Chinese drivers flock to its cars. The company expects to sell 1.92 million vehicles in North America, 2.5 percent less than the year just ended as it struggles to sell sedans including the Accord, which have fallen out of fashion in the past few years. Honda has been ramping up production of SUVs to keep up with strong demand for larger models in the United States, although overall vehicle sales show signs of slowing following a boom cycle after the global financial crisis. Mazda is taking a similar strategy, announcing on Friday it would expand production of SUV crossover models at home, while equipping overseas plants to enable more flexible production of models according to market needs. Japan's No. 5 automaker forecast a 19 percent jump in operating profit for the current financial year as it expects higher sales volumes, particularly in North America, to help it recover from last year's profit slump.A CONSERVATIVE OUTLOOK Executive Vice President Seiji Kuraishi acknowledged that Honda's expected currency hit of 95 billion yen was based on a "conservative" yen forecast, adding that growing costs to create next-generation cars would also impact earnings. "Our costs are rising to develop new technologies which will be needed in the future, like automated driving functions and electric cars," he told reporters at a results briefing.

Hawaii is first state to sue Takata

Hawaii became the first state to sue Takata Corp. alleging the company knowingly sold potentially defective airbags in a suit filed May 13. The state also claims Takata covered up data showing the airbags were a danger and then delayed recalling them. Hawaii also named Honda Motor Co., which owns part of Takata, and Honda's US affiliates, American Honda Motor Co., and Honda of America Manufacturing Inc., in the complaint. The state claims Takata switched to lower-cost ammonium nitrate for its airbag inflators, despite internal testing that the propellant was "unpredictable and prone to explode." Hawaii, which brought the suit through its Department of Commerce and Consumer Affairs Office of Consumer Protection, is seeking the maximum civil penalty of $10,000 per violation. It also wants Takata to make restitution to owners, run an educational campaign to spur owners to get their cars fixed, and repay profits made from the faulty airbags. Faulty Takata airbags have killed 13 people and are estimated to have injured more than a 100 more. NHTSA says 28.8 million vehicles with the airbags have been recalled, and potentially 40 million more may need to be recalled. Related Video: Image Credit: Getty Images Government/Legal Honda Safety lawsuit Hawaii