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Honda charged another $363 million over Takata airbags

The Takata airbag recall is growing increasingly expensive for Honda. In the latest hit to the automaker's bottom line, the company is revising the expected costs of its global safety campaigns by an additional 44.8 billion yen ($363 million) after the massive expansion in May. Months ago, Honda announced that it had set aside 50 billion yen ($425 million at the time) to meet the predicted expenses. According to Automotive News, due to the rather arcane laws of accounting, these new costs will actually be applied to the fiscal year that ended on March 31, rather than the current one. Honda's revised earnings will be announced in late June. The company previously reported an operating profit of 651.7 billion yen ($5.3 billion), which was down 13 percent from the previous year. There has been no change to planned dividends for investors. In the US, Honda and Acura have a total of about 6.28 million vehicles in need of a replacement airbag inflator, and the automaker says about two million of those are already repaired. In addition to the Takata campaign, the company has faced other financial setbacks during this calendar year. For example, in early January, it received a $70 million fine from the National Highway Traffic Safety Administration for failing to report 1,729 cases of injuries or deaths over 11 years. As part of a strategy to improve quality globally, Honda cut back its global sales forecasts for the coming year, and it also decided not to make any volume predictions through 2017. To: Shareholders of Honda Motor Co., Ltd. From: Honda Motor Co., Ltd. 1-1, Minami-Aoyama 2-chome, Minato-ku, 107-8556 Tokyo Takanobu Ito President and Representative Director Notice of Events after the Reporting Period Regarding Product Warranty Expenses Honda Motor Co., Ltd. (the "Company") and its consolidated subsidiaries have been conducting market-based measures in relation to airbag inflators, such as product recalls and a Safety Improvement Campaign. Due to factors arising since May 2015 such as an expansion of the scope of these market-based measures based on an agreement between our supplier and the U.S. National Highway Traffic Safety Administration, a change has arisen in the estimate relating to product warranty expenses. The amount of product warranty expenses now expected to be incurred is 44,800 million yen.

Honda surprises with Gear concept in Montreal

It's not often that a major automobile manufacturer debuts a brand-new concept at the Montreal International Auto Show - mostly because it takes place concurrently with the massive show in Detroit - but here we are with the so-called Honda Gear Concept Study Model, which was just uncovered by our friendly neighbors to the north.
According to the automaker, the Gear "demonstrates Honda's innovative approach to providing the automotive answer for young, urban, Gen-Y lifestyles. Inspired by fixed-gear bicycles... Gear is simple and utilitarian, but also customizable, connected and full of personality." It is apparently "practical but fun, customizable, connected and affordable. Everything that young, discerning urban buyers would want in a car," according to Dave Marek, Design Director at Honda R&D Americas.
We don't know anything else - what might lie underhood, how it is "connected" or at what price point it might potentially be sold at. Check out our high-res image gallery above and the press release below and you'll know just about as much as we do.

Takata airbag recalls add another 5 million vehicles

The Takata airbag inflator recall expanded by about 6.5 million vehicles recently when Toyota and Nissan announced global expansions to replace the faulty parts. You can add another 5 million more as Honda and Daihatsu also broaden their replacement campaigns. Although in this latest case, none of the affected models are in the United States or Canada. Honda is recalling 4.89 million more vehicles globally, and Daihatsu has about 260,000 to repair in Japan, according to Automotive News. With these latest expansions, all of the affected automakers have needed to fix about 36 million vehicles globally for these faulty airbags since 2008. Some of the first instances of these problems were found in an Isuzu campaign in 2001. This latest round of recalls was sparked by a study from Takata that found the inflators' propellant could be affected by moisture over time. While the automakers received this information in March, it took time to determine the number of vehicles in need of repair and where they were located, according to Automotive News. To make sure all of the affected vehicles in the US are repaired in a timely fashion, the National Highway Traffic Safety Administration is reportedly considering a strategy to force things to speed up. Honda and Toyota are already using outside suppliers for the parts they need. Related Video: News Source: Automotive News - sub. req.Image Credit: Shizuo Kambayashi / AP Photo Recalls Honda Daihatsu Safety Takata airbag recall