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Honda working with new supplier Autoliv for Takata inflator recall

Takata is fighting against US regulators over whether to expand its airbag inflator recall nationwide, but the affected automakers are continuing to broaden their own campaigns to get these vehicles fixed. Honda is the first company to take the bold move of partnering with another supplier for its replacement parts. It just announced plans to work with Autoliv to create components for models needing repaired in the US. "The agreement is made in order to meet the expanded supply of inflators needed by Honda and is subject to definitive documentation," Autoliv said in a statement. The company plans to add the extra capacity for these replacement parts at its existing factories, and deliveries are expected to begin in six months. The decision to switch suppliers was quite surprising because the choice was largely considered impractical previously. Automakers believed that changing manufacturers could take as long as a year or more to implement. However, Autoliv apparently found a way to accelerate that. According to Reuters, Honda said at a hearing in the House of Representatives on December 3 (pictured above) that it was in talks with Autoliv and another supplier called Daicel about building more inflators. The extra parts are sure to come in handy for Honda, as it is now officially expanding its driver side inflator recall nationwide. Although, that that option was already available to any concerned drivers who asked for the remedy. Even with added capacity, Takata had estimated it would take two years to manufacturer enough replacements to fix all of the affected vehicles from all of the automakers. Scroll down to read Autoliv's statement on its new role. Autoliv to supply replacement airbag inflators to be used by Honda (Stockholm, December 3, 2014) – – – Autoliv, Inc. (NYSE: ALV, and SSE: ALIV sdb), the worldwide leader in automotive safety, will supply replacement airbag inflators to be used by Honda Motor Company in support of the ongoing field action initiatives in the United States. The agreement is made in order to meet the expanded supply of inflators needed by Honda and is subject to definitive documentation. In order to be able to meet increased demand, Autoliv will build additional inflator capacity in its existing manufacturing facilities. Deliveries are estimated to commence after a period of about six months from today.

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.

Takata airbag recalls add another 5 million vehicles

The Takata airbag inflator recall expanded by about 6.5 million vehicles recently when Toyota and Nissan announced global expansions to replace the faulty parts. You can add another 5 million more as Honda and Daihatsu also broaden their replacement campaigns. Although in this latest case, none of the affected models are in the United States or Canada. Honda is recalling 4.89 million more vehicles globally, and Daihatsu has about 260,000 to repair in Japan, according to Automotive News. With these latest expansions, all of the affected automakers have needed to fix about 36 million vehicles globally for these faulty airbags since 2008. Some of the first instances of these problems were found in an Isuzu campaign in 2001. This latest round of recalls was sparked by a study from Takata that found the inflators' propellant could be affected by moisture over time. While the automakers received this information in March, it took time to determine the number of vehicles in need of repair and where they were located, according to Automotive News. To make sure all of the affected vehicles in the US are repaired in a timely fashion, the National Highway Traffic Safety Administration is reportedly considering a strategy to force things to speed up. Honda and Toyota are already using outside suppliers for the parts they need. Related Video: News Source: Automotive News - sub. req.Image Credit: Shizuo Kambayashi / AP Photo Recalls Honda Daihatsu Safety Takata airbag recall