Honda Recalls 143,000 Vehicles In Japan, Image On the Rocks?

Apr 08, 2016 12:14 PM EDT | Dimple A.

Honda is recalling 143,000 vehicles in Japan owing to some flaw found on the vehicle itself. It stands out that the company is facing another milestone of hurdle and challenges.

In a post from the International Business Times, Honda Motor Company recalled almost 143,000 vehicles in the region of Japan after air bags made by Daicel Corporation failed to meet the standards that can assure safety and quality.

Moreover, the recall of the vehicles in Japan is a direct inclination of Honda's desire to promote safety above all cost. Even though the recall is not directly linked with the massive recall pertaining to the Takata incident, the mere move is a display of an underlying flaw detected on the cars.

On a different note, Takata's recall of about 24 million cars from 14 manufacturers installed in cars dating back more than a decade has also affected Honda. In line with that, Honda vehicles are one of the most affected companies because of its long linkage with Takata, according to the same post.

The inflators are the major cause of the recall, according to Bloomberg. "The propellant used in the air bag inflators weren't suitable and had inappropriate velocity.," Misato Fukushima, a spokeswoman for Honda said.  "The Daicel inflators in the recalled vehicles are fitted into air bag modules made by Nihon Plast Co. and are not used as replacements for Takata."

Meanwhile, Daicel spokesman Masahiko Hirokawa explained that the Company has decided to temporarily put on hold all of their productions specially with the inflator and supports Honda's decision to implement the recalling all of the affected cars.

Owing to the massive recall being done by Honda, all stakeholders must brace themselves since profits and revenues are forecast to take a downturn surge. As of the moment, Daicel's shares have already fallen into an 8.2 percent value in the recent Tokyo trading, giving the firm its biggest decline since the year 2012.

On the other hand, Honda is not safe from the turmoil, as Honda's shares have also dropped to 1.6 percent, and Takata also underwent another declined figures. With that in mind, it stands to reason that this is not the only recall that Honda has implemented. Earlier this week, Honda recalled some of its Fit subcompact and Vezel sport-utility vehicles in Japan owing to defective power steering along with troublesome electric current detected in the cars.

If Honda's actions will continue in the coming days and if the company initiates another recall, it would clearly place the company's image on the rocks. It remains to be seen how Honda would deal with this crisis and the strategies that they would implement to gain back public confidence and trust.

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