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Honda Earnings Dragged Down by Takata Airbag Problem

Carmaker set to recall another 21 million Takata-made Vehicles.

by on May.13, 2016

Honda aims for a sweet spot in the midsize pickup market with the 2017 Ridgeline. It may be a key player in Honda's rebound from Takata-impacted profits.

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.

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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…)

Toyota, Nissan Recall Another 6.5 Mil Vehicles for Faulty Airbags

Total Takata recalls now approaching 30 mil worldwide.

by on May.13, 2015

A Takata airbag after a crash.

Toyota Motor Corp. and Nissan Motor Co., Japan’s two largest automakers, have announced another major recall to fix potentially faulty Takata airbags, a move affecting a total of 6.5 million vehicles, about 1 million of them sold in the U.S.

All told, nearly 30 million vehicles have been recalled as a result of the problem, which can cause airbags to inflate over-aggressively in a crash, sending shrapnel flying into the passenger compartment. The problem has so far been linked to a half-dozen deaths, most of them in the United States.

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The latest actions may not spell the end of the Takata problem, however, as some safety advocates are calling for the recall of as many as 30 million vehicles equipped with suspect Takata airbags in the U.S. alone. (more…)

Honda CEO Ousted Amidst Airbag Woes

New chief executive Hachigo facing serious challenges.

by on Feb.23, 2015

Honda CEO Takanobu Ito shakes hands withe successor, Takahiro Hachigo in Tokyo on Monday.

Honda’s ongoing airbag problem has claimed another victim. In this case, it’s President and CEO Takanobu Ito, who will step aside in April, at the end of the automaker’s fiscal year.

Honda has been forced to recall millions of vehicles around the world due to problems with faulty airbags supplied by close ally, the Japanese partsmaker Takata. But Honda has run into a number of other issues and earlier this month scaled back its earnings forecast for the rest of the year.

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Ito will be replaced by Takahiro Hachigo, currently Honda’s managing officer. During a 33-year career, Hachigo helped guide the maker’s business ventures in China, Europe and the U.S. Among other things, he led the development of the popular Honda Odyssey minivan built in one of the maker’s many American assembly plants.

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My Car’s Been Recalled: Now What?

Recall notice provides next steps on getting repair completed.

by on Jul.23, 2014

If you find this in your mailbox, don't panic. Open it to find out what you need to do to ensure your vehicle is safe to drive.

Due to the sheer number of vehicles recalled in the United States this year – in excess of 40 million – you very well may have a vehicle that is involved in some sort of safety-related service action.

So, the big question is: what do I do now?

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Well, first: don’t ignore that notice. Experts warn that even seemingly minor recalls can involve life-threatening defects and must be dealt with. (more…)

Chrysler Announces Major New Recalls

Nearly 840,000 vehicles impacted by five separate campaigns.

by on Jul.08, 2013

Chrysler's 200 sedan is one of the maker's many models covered by five separate new recalls.

Chrysler Group LLC is recalling nearly 840,000 vehicles due to a series of safety-related issued, putting new stress on the Detroit maker’s efforts to rebuild its reputation for quality, reliability and durability.

The problems cover a wide range of issues, including faulty head restraints, airbag software glitches and electronic stability control systems. The quintet of recalls comes just weeks after the maker reluctantly agreed to call back 1.2 million Jeeps due to potential fire hazards.

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Though the Jeep recall was significantly smaller than federal safety regulators originally sought it nonetheless means that Chrysler has so far had more individual vehicles sold in the U.S. covered by recall orders than any other maker.

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Toyota Again Topped Recall List in 2012

Overall industry tally rose 4.5% last year.

by on Jan.08, 2013

Toyota paid a record fine for illegally delaying the recall of the Lexus RX line last year.

For the third time in four years, Toyota Motor Corp. recalled more vehicles than any other automaker operating in the U.S. market during 2012.

Toyota’s various safety-related service actions involved a total of 5.3 million cars, trucks and crossovers last year, nearly half of those in a single recall involving potential vehicle fires.  That problem pushed the Japanese giant past Honda, which led the recall list in 2011 and came in second in 2012 with 3.9 million vehicles involved in such safety campaigns.

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But the industry, on the whole, called back 16.2 million vehicles last year, a list that also included motorcycles, trucks and RVs. That was a 4.5% increase over 2011, according to a study of National Highway Traffic Safety Administration data by the Detroit News.

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Ford Recalling New Fusion for Faulty Headlamps

Second recall in a week for new sedan.

by on Dec.07, 2012

The 2013 Ford Fusion faces a second recall.

Ford Motor Co. plans to recall more than 19,000 of its new Fusion midsize sedans to replace faulty headlamps, the second service action hitting the new and well-publicized vehicle in just a week.

Last Friday, the automaker announced that it would recall about 80,000 vehicles, including nearly 16,000 Fusions, because of a potential fire risk.

The latest recall was triggered by the discovery of a manufacturing defect at a Ford supplier that could result in the vehicle’s headlamps dimming and becoming hazy over time, according to documents the automaker filed with the National Highway Traffic Safety  Administration.

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A company spokesman said the headlamp problem was discovered during internal testing of the Fusion sedan, which was completely redesigned for the 2013 model-year and which went on sale in September. The maker says it has received no reports of accidents or injuries related to the problem – though NHTSA warned that the defect could nonetheless increase the possibility of a crash.

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Honda Targeted in Another Safety Probe

Hyundai Santa Fe also under investigation.

by on Oct.12, 2012

The 2005 Pilot is the latest Honda model under a safety investigation.

After a steady, decade-long decline, the number of automotive recalls has taken a surprisingly sharp jump over the last several years – most analysts pointing to the backlash over Toyota’s unintended acceleration scandal that, in 2009 – 10 led the maker to call back 14 million vehicles.

While Toyota this week announced its largest single recall ever – 7.5 million vehicles, a third of those in the U.S. due to a potential fire hazard – it’s cross-town rival Honda that has been especially hard hit by safety issues over the last two years.  And the situation only appears to be getting worse.

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The National Highway Traffic Safety Administration is opening an investigation into 87,000 Honda Pilot SUVs sold during the 2005 model-year.  The safety agency has received complaints that suggest the Pilot’s electronic stability control system may suddenly act up, leading to deceleration, with steering pulling to one side. Making matters worse, the complaints indicate the brake lights don’t illuminate which could lead to a rear-end collision – especially in a situation where vehicles have been reported coming to a near-stop from highway speeds.

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As Honda Keeps Racking Up Recalls Will it Tarnish Maker’s Quality Reputation?

Honda logs 3 big recalls in one week – impacting 1.7 million vehicles.

by on Oct.08, 2012

The Honda CR-V -- a 2006 shown here -- has faced a number of recalls this year.

It was a busy week for Honda, the maker announcing three separate recalls impacting 1.7 million vehicles – even as federal safety regulators revealed a new investigation that could eventually lead to the recall of yet another 600,000 Honda minivans and SUVs.

The latest developments put Honda firmly on track towards repeating last year’s dubious achievement as the maker to recall the most vehicles in the U.S. market. Of a total 15.5 million vehicles recalled in 2011, 3.8 million of them carried badges for Honda or its luxury brand Acura. This past week’s recalls alone accounted for nearly 45% of last year’s total.

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Even before the latest series of recalls was announced, George Peterson, chief analyst with AutoPacific, Inc., warned that Honda “needs to be worried” about the impact the ongoing series of recalls could have on its traditional reputation for building some of the market’s highest-quality products.

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Toyota Narrowly Misses Third Year Atop Recall List

Overall, recalls down for 2011.

by on Dec.30, 2011

Toyota recalled 200,000 Sienna minivans in 2011, the third year in a row in which it topped the U.S. recall list, with 3.5 million of its vehicles impacted overall.

Editor’s Note: This story has been revised to reflect a last-minute Honda action and final federal recall numbers for 2011.

It isn’t always good to be number one, as Toyota clearly understands.  While it slipped from first to third in the global automotive sales sweepstakes when the books are closed on 2011 the Japanese giant might be more pleased that it narrowly missed having the most recalls of any automaker in the U.S. for the third year in a row.

That dubious distinction now goes to Honda, which expanded its ongoing series of airbag defect-related actions to end the year having recalled 3.8 million vehicles.  Honda closed 2011 with 15 separate campaigns compared to Toyota’s still sizable 13.

Despite the maker’s claim that it has put its quality and safety problems behind it, Toyota — and its Scion and Lexus brands — still were forced to recall 3.5 million vehicles this past year, significantly more than the third-highest manufacturer on the government’s list.  And that doesn’t include a sizable number of vehicles for which the maker issued technical service bulletins, which encouraged dealers to fix nagging problems that didn’t wind up getting tallied on the National Highway Traffic Safety Administration’s formal recall chart.

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In all, automakers recalled 15.5 million light vehicles in 2011, according to an analysis by WardsAuto, a sharp decline from the 20 million year before when the industry – largely due to Toyota — saw callbacks jump to 17.2 million cars, trucks and crossovers.  Toyota alone had 7 million vehicles involved in its 2010 campaigns. The worst year for the auto industry was 2000 when 24.3 million vehicles were involved in safety-related recalls.

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