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Honda profit targets tumble in wake of Takata scandal

Takata's massive airbag inflator recall will likely do some damage to Honda's bottom line this year, according to the Japanese automaker's latest forecasts. The company will allocate 50 billion yen ($425 million) to fulfill costs related to the safety campaigns, Reuters indicates. The decision will reduce estimated operating profit by about 6.5 percent to 720 billion yen ($6.1 billion US) for the fiscal year ending March 31. In addition to lower profits, Honda also cut back its sales estimate for the year to 4.45 million vehicles from the previous 4.62 million, according to Reuters. This was largely due to lower-than-expected demand in Japan. "We are not seeing a big impact on sales in North America from the airbag issue," company vice president Tetsuo Iwamura (pictured above) told Reuters. The decreased forecasts come at the same time as the possibility of another death in a Honda vehicle from the Takata parts. According to Automotive News, a man in Florida died in a crash in his 2002 Accord, but investigators have not yet determined whether the inflator was the cause. However, the vehicle was included in a 2011 recall for the part and was not repaired. The family intends to file a lawsuit alleging the inflator ruptured, spraying metal shrapnel into the driver's neck. Reportedly, the owner was never notified of the recall. While the Takata inflator recall is affecting many companies with alleged links to at least five deaths and 139 injuries worldwide, Honda has it among the worst. Including vehicles covered under the previous regional repair campaign for the issue, the automaker needs to repair roughly 5.4 million vehicles just in the US. Honda has taken action by employing suppliers other than Takata to supply some of its replacement parts for the recall. The business is also reportedly switching airbag suppliers for the next-gen Accord and possibly the 2016 CR-V and Odyssey.

Honda recalls 2012-13 Fit Sport models over stability control issue

Honda is recalling 43,782 examples of the 2012 and 2013 Fit Sport in the US and close to 2,000 more in Canada. During federal compliance testing it was discovered that the software for the Vehicle Stability Assist allows an excessive tilt angle before applying the brakes to prevent a crash. The issue only affects Fit Sports equipped with a certain kind of tire.
Honda will notify owners in mid-May, at which time owners can take their cars to dealers to have the stability control software updated free of charge. There's a press release from Honda below with more details.

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.