Asia autos correspondent, Tokyo
Chang-Ran's Feed
Jan 30, 2015

Honda cuts profit target as Takata air bag recalls bite

TOKYO, Jan 30 (Reuters) – Japan’s Honda Motor Co
sliced 6.5 percent off its core annual profit forecast as it set
aside hundreds of millions of dollars in extra cash to cover an
extended car recall to replace potentially faulty air bags made
by Takata Corp.

Reporting its third-quarter earnings fell by nearly a
quarter as it soaked up recall costs, Japan’s third-largest
automaker said it now expects an operating profit of 720 billion
yen ($6.1 billion) for the year to March 31.

Jan 29, 2015

Honda recalls to squeeze profit, cloud guidance as cheap fuel poses new threat

TOKYO, Jan 30 (Reuters) – As Japan’s Honda Motor Co
pays hundreds of millions of dollars to replace potentially
deadly air bags, hitting earnings, a new headache lies around
the bend – cheaper U.S. petrol could lure buyers away from its
fuel-efficient cars.

The country’s third-largest automaker reports income for the
October-December quarter later on Friday that analysts see
falling 17 percent from a year earlier, squeezed by the cost of
voluntary recalls involving air bag inflators made by top
supplier Takata Corp. The hit may be enough to trigger
a full-year profit warning.

Jan 21, 2015

Toyota, in unusual move, flags sales fall in 2015

TOKYO, Jan 21 (Reuters) – Toyota Motor Corp took
the unusual step of projecting a drop in annual vehicle sales on
Wednesday in a move that could see Volkswagen steal
the industry crown this year as demand slumps in Japan,
Indonesia and other key markets.

The forecast underscores Chief Executive Akio Toyoda’s
resolve to steer the company through measured, profitable growth
rather than chase volumes after getting burned by a capacity
glut in the wake of the 2008 global financial crisis.

Dec 11, 2014

Japan automakers add 550,000 cars to Takata air bag recalls

TOKYO (Reuters) – Three Japanese automakers will recall more than half a million cars globally to replace air bag inflators made by Takata Corp (7312.T: Quote, Profile, Research, Stock Buzz), bringing the total tally of Takata-related recalls across all brands to around 20 million since 2008.

The recalls announced on Thursday by Honda Motor (7267.T: Quote, Profile, Research, Stock Buzz), Nissan Motor (7201.T: Quote, Profile, Research, Stock Buzz) and Mitsubishi Motors (7211.T: Quote, Profile, Research, Stock Buzz) correspond with a similar, precautionary recall by Toyota Motor (7203.T: Quote, Profile, Research, Stock Buzz) last week after a recent “unusual deployment” of a passenger-side air bag at a scrap yard in Japan.

Dec 9, 2014

Honda to expand investigative air bag recall globally

TOKYO, Dec 9 (Reuters) – Honda Motor said it will
expand an ‘investigative’ recall to replace potentially lethal
Takata Corp air bag inflators across the globe, taking
the total Takata-related recall tally of all brands to more than
19 million since 2008.

Honda earlier added about 2.6 million cars in the United
States when it expanded nationwide a recall of driver-side air
bag inflators that was previously limited to 11 states and
territories with hot and humid climates.

Dec 4, 2014

Toyota lessons lost on Takata as it resists U.S. recall order

TOKYO (Reuters) – Takata Corp’s (7312.T: Quote, Profile, Research, Stock Buzz) resistance to a U.S. order to expand a recall of its air bag inflators is likely driven by a need to protect itself from legal liability, but risks longer-term business damage by alienating the public, experts say.

Takata this week rejected a National Highway Traffic Safety Administration (NHTSA) demand to declare its inflators defective and call in vehicles U.S.-wide for replacement. An existing recall is limited to a few hot and humid states. In a letter, Takata queried NHTSA’s justification for the order while a cause for why its inflators can erupt with excessive force is still unclear. The Japanese firm left it up to automakers to decide whether to expand the recall.

Dec 4, 2014

Toyota expands Takata air bag recall in Japan, China; cause unknown

TOKYO (Reuters) – Toyota Motor Corp (7203.T: Quote, Profile, Research, Stock Buzz) said on Thursday it would call back 190,000 more vehicles, mostly in Japan, to replace potentially defective air bags made by Takata Corp (7312.T: Quote, Profile, Research, Stock Buzz), the latest in a long line of recalls for the embattled auto parts supplier.

The move follows an unusual deployment of a Takata-made air bag inflator in a 2003-model Toyota Will Cypha subcompact at a scrapyard in Japan last month, and the cause of the potential problem is still unknown, Japan’s transport ministry said.

Dec 3, 2014

U.S. says Takata response to nationwide air bag recall order ‘disappointing’

DETROIT/TOKYO (Reuters) – U.S. auto safety regulators said Takata Corp’s response to an order to expand a recall nationwide was “disappointing”, criticizing the Japanese auto parts supplier for shirking responsibility over its potentially deadly air bags.

Takata, at the center of a global recall of more than 16 million cars in the past six years, had until Tuesday to respond to the National Highway Traffic Safety Administration’s (NHTSA) order to expand a regional recall and replace driver-side air bags from across the United States.

Nov 27, 2014

Toyota recalls more cars for dangerous Takata air bags

TOKYO (Reuters) – Toyota Motor Corp said on Thursday it would recall 57,000 vehicles globally to replace potentially deadly air bags made by Takata Corp, in a sign that a safety crisis around the Japanese auto parts maker is far from contained.

Toyota’s action follows a recall by rival Honda Motor Co for the same problem two weeks ago after revelations of a fifth death, in Malaysia, linked to Takata’s air bag inflator.

Nov 20, 2014

As U.S. hearings loom, Takata faces long slog in air bag crisis

WASHINGTON/TOKYO, Nov 20 (Reuters) – Takata Corp
faces a long battle to gauge the fallout from a fast-moving air
bag crisis as recalls mount up, adding to the costs for the
loss-making Japanese auto parts maker.

Two U.S. Senators have called a news conference on Thursday
with the sister of someone who died in an Arizona accident in
2003 – potentially a sixth fatality linked to Takata air bags.
Arizona, which has a dry climate, has not been
covered by a regional recall focusing on hot and humid areas.

    • About Chang-Ran

      "I have been covering the Japanese auto industry since 2002, broadening coverage to the Asian region in 2003."
      Joined Reuters:
      2000
      Languages:
      English, Japanese, Spanish
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