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Takata airbags were adopted in late 1990s to save a few dollars per vehicle

According to a new report from The New York Times, General Motors started using airbags supplied by Takata in the late 1990s as a cost-saving measure even after receiving warnings about their safety. Takata's airbag modules were reportedly 30-percent cheaper than its competitors' offerings. GM approached Autoliv, which until that time had been its main airbag supplier, to see if it could offer a competitively priced alternative to Takata. Autoliv tested Takata's airbag inflator and found that it was unsafe, according to scientists who worked for the supplier at the time. Chris Hock, who until recently still worked for Autoliv, said the inflator "turned it into shrapnel" when tested. GM was subsequently warned by Autoliv that Takata's ammonium nitrate inflators were potentially dangerous. Still, "General Motors told us they were going to buy Takata's inflaters unless we could make a cheaper one," said Linda Rink, who served as a senior scientist at Autoliv at the time. A spokesperson for General Motors told The Times that it would be inappropriate to comment on discussions that "occurred two decades ago between Old GM and a supplier." So far, no Takata-supplied airbags have ruptured in an accident, and GM was far from the only automaker to make a switch to Takata airbags in order to save money. A total of 64 million airbags have so far been recalled from nearly every automaker selling vehicles in America. A spokesperson from Honda said in a statement to The Times that "There was no industry understanding in the late 1990s" that ammonium nitrate airbag inflators were risky. The majority of deaths linked to Takata airbags were in vehicles built by Honda. Takata still produces airbag inflators that use an ammonium nitrate compound, despite the devices being blamed for at least 14 deaths. Click here for NHTSA's dedicated site on open Takata recalls. Related Video: News Source: The New York TimesImage Credit: Joe Skipper / Reuters Government/Legal Recalls GM Honda Safety autoliv

Acura organizes new business division to confront falling sedan sales

Honda and Acura North America have announced a major restructuring of operations in hopes of turning around Acura's flagging business. For 2013, sales for Acura's sedans dropped 10.4 percent, while its CUV sales grew by 21 percent. The newly formed Acura Business Planning Office will attempt to right the ship.
As part of the restructuring, Acura is promoting Erik Berkman from President of Honda R&D Americas to lead a new division called the Acura Business Planning Office. Berkman has been with Honda since 1982 and led development of the 2006 Accord. He was also the first US engineer to head North American research and development and has been head of Honda Performance Development since 2008. "Erik's appointment to the new Acura Business Planning Office is a clear indication of the high priority we place on Acura," said Honda spokesperson Jeffrey Smith to Automotive News.
American Honda Motor President and CEO Tetsuo Iwamura is also going to be working to improve the business. He has been elected chairman of American Honda's board, and has simultaneously taken the new position of Corporate Brand Officer to improve the management of the company's brands.

Honda scraps 2017 sales target amid concerns over quality

Honda CEO Takanobu Ito thinks that the automaker he leads needs to go back to basics to avoid continuing quality concerns. To do that, the boss is making the radical shift of entirely chucking the company's six-million vehicle annual sale targets through 2017, and there's no intention to include the goals in the next midterm plan, either, according to Bloomberg. The move comes soon after last month's announcement to set aside about $425 million to pay for recalls and slice forecasts by about 17,000 cars for the fiscal year. The complete shift from the way most automakers do business stems from the significant number of recalls from Honda last year. While the most glaring example is the Takata airbag problems affecting roughly 5.4 million of the company's vehicles in the US, that's hardly the only one. In Japan, the Fit Hybrid needed five repair campaigns in 12 months to fix various issues, and according to Bloomberg, the Vezel (similar to the HR-V in the US) has needed three. Honda also had to pay $70 million to the National Highway Traffic Safety Administration for failing to submit 1,729 safety reports to the agency. The Japanese automaker has been working on ways to right the ship for months. In the wake of the Fit recalls, top executives took a three-month, 20 percent pay cut and created an independent position to monitor vehicle quality. Previous Honda CEOs have also offered stern words to Ito. The problems haven't had quite such a dire effect in the US, though. Sales in 2014 were up one percent, and January 2015 showed a year-over-year improvement of 11.5 percent