Honda takes $362M charge to cover Takata recall expenses
Honda has announced plans to refile its financial disclosures for the previous fiscal year, revising expenses to account for increasing costs from the Takata airbag recall.
The automaker expects to spend an additional 44.8 billion yen (~$362 million USD) to replace defective airbag inflators. Honda and Toyota have been particularly hard hit by the recalls, which affect an estimated 34 million vehicles sold in the US market.
The inflators are believed to be sensitive to moisture exposure, causing the chemical propellant to degrade and consequently ignite with too much force. Shrapnel from exploding inflators has been blamed for numerous injuries and at least six deaths.
The recall campaigns have led to some confusion, as Takata initially refused to declare its parts defective. Most automakers initially handled the service programs on a regional basis, reflecting the greater chance of failure in regions with high absolute humidity, however many campaigns were later revised to include more vehicles registered across the country.
Honda’s financial disclosure is among the first indicators hinting at the growing costs of the Takata recall campaigns. The total is likely to rise as other automakers reveal repair estimates.