Honda Motor Co. earnings took another tumble as the maker was hit by both a stronger yen and the ongoing recall of faulty Takata airbags.
The third-largest of Japan’s automakers recalled about four times as many vehicles last year – largely due to the Takata problem – than it sold. And the issue, now linked to 13 deaths, isn’t about to go away. Pressed by concerns that the defect is more widespread than originally believed, Honda will recall another 21 million vehicles, Executive Vice President Tetsuo Iwamura said Friday.
Honda net income for the fiscal year that ended March 31 fell to 344.5 billion yen, or $3.2 billion. That not only trailed the consensus estimate of industry analysts but came in 34% short of the company’s own forecast earlier in the year. (more…)