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Friday, December 12, 2014

Honda to Help Takata as Global Recalls Expand, Nikkei Says

Today's post was shared by Take Justice Back and comes from washpost.bloomberg.com


Honda Motor Co. will expand its recalls for faulty air bags made by Takata Corp. globally and provide financial support to the supplier if necessary, the Nikkei newspaper reported.
Honda will ensure Takata can continue operating as allowing it to fail would create trouble for automakers, Nikkei reported, citing an interview with Honda President Takanobu Ito. Akemi Ando, a Honda spokeswoman, said the Tokyo-based company hasn’t made any decisions related to providing financial help to Takata.
“Honda will keep cooperating with Takata until all the necessary parts are replaced,” she said by phone.
The number of Honda vehicles called back for repair will double in the U.S. and increase by a total of about 1 million in China, Japan and elsewhere, bringing the tally to 13 million, according to Nikkei. At least 10 automakers have recalled cars worldwide to replace Takata air bags that can deploy with too much force and spew metal parts at passengers.
Honda, which is Takata’s biggest customer and holds 1.2 percent of its shares, is willing to shoulder part of the added costs from the wider recalls to get to the bottom of its supplier’s air-bag problems, the newspaper cited Ito as saying.
Takata’s shares climbed as much as 7.8 percent and traded up 0.4 percent as of the 11:30 a.m. break in Tokyo trading. Honda slid about...
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