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Honda accused of not reporting all airbag problems

The Takata airbag recall that has afflicted a number of automakers may have just taken a very bad turn for Honda, which has already recalled over one million vehicles. Clarence Ditlow and the Center for Auto Safety have accused the Japanese manufacturer of failing to report two "injury-and-death" incidents. To determine just what happened, the company has initiated a third-party audit.
According to Bloomberg, CAS claims Honda failed to report fatalities in 2009 and 2013, a point Honda doesn't seem to contest, indicating that it didn't report so-called "verbal claims."
"It is our understanding that some manufacturers choose to include these types of verbal claims, and that these constitute the majority of the injury-and-death claims that they report to the National Highway Traffic Safety Administration," the company told Bloomberg via email. "We believe this practice accounts for the vast majority of the difference between the total number of injury-and-death claims reported by Honda compared to certain other manufacturers."

Honda boss says Chinese drivers don't want green cars

According to The Wall Street Journal, Honda CEO Takanobu Ito believes that China's nascent car-buying demographic isn't all that interested in hybrid cars - at least not yet. The emissions story doesn't resonate with them, and certainly not for the higher purchase premium such models usually carry. What they really want, Ito believes, is reliable, affordable cars that fit their needs. When it comes to Honda sales, the numbers would appear to jibe with his thoughts: Honda sold 598,577 vehicles in China last year through its two joint ventures, yet just 542 of them were hybrids - not even a tenth of a percent. However, Toyota sold 840,500 cars in China last year, and two percent of that total, 17,300 units, were hybrids, which is closer to the still-piddling three-percent ratio of sales that Toyota posted in the US last year.
Honda offers the Insight, Fit Hybrid and CR-Z in China and plans to make components for its Integrated Motor Assist hybrid system there from next year, the hope being it will reduce the cost of hybrid cars for local buyers. That was one part of the plan Honda laid out last year to popularize its IMA system in China. Other initiatives include the introduction of a new hybrid system for mid-sized and large vehicles and a plug-in hybrid. Among the four new vehicles Honda showed during this weekend's press day for the Shanghai Motor Show (including the Concept M minivan pictured above) there was not a single hybrid among them.

Honda profit targets tumble in wake of Takata scandal

Takata's massive airbag inflator recall will likely do some damage to Honda's bottom line this year, according to the Japanese automaker's latest forecasts. The company will allocate 50 billion yen ($425 million) to fulfill costs related to the safety campaigns, Reuters indicates. The decision will reduce estimated operating profit by about 6.5 percent to 720 billion yen ($6.1 billion US) for the fiscal year ending March 31. In addition to lower profits, Honda also cut back its sales estimate for the year to 4.45 million vehicles from the previous 4.62 million, according to Reuters. This was largely due to lower-than-expected demand in Japan. "We are not seeing a big impact on sales in North America from the airbag issue," company vice president Tetsuo Iwamura (pictured above) told Reuters. The decreased forecasts come at the same time as the possibility of another death in a Honda vehicle from the Takata parts. According to Automotive News, a man in Florida died in a crash in his 2002 Accord, but investigators have not yet determined whether the inflator was the cause. However, the vehicle was included in a 2011 recall for the part and was not repaired. The family intends to file a lawsuit alleging the inflator ruptured, spraying metal shrapnel into the driver's neck. Reportedly, the owner was never notified of the recall. While the Takata inflator recall is affecting many companies with alleged links to at least five deaths and 139 injuries worldwide, Honda has it among the worst. Including vehicles covered under the previous regional repair campaign for the issue, the automaker needs to repair roughly 5.4 million vehicles just in the US. Honda has taken action by employing suppliers other than Takata to supply some of its replacement parts for the recall. The business is also reportedly switching airbag suppliers for the next-gen Accord and possibly the 2016 CR-V and Odyssey.