Honda to recall additional 21m cars to replace airbags

Honda to recall additional 21m cars to replace airbagsJapanese automaker, Honda has said that it will recall an additional 21 million vehicles form the market in order to replace the faulty air bags made by Takata Corporation.

Executive Vice President Tetsuo Iwamura said that the company will replace airbags on 21 million vehicles. The company has taken another 267 billion yen charge related to Takata air bag recalls. The U. S. National Highway Traffic Safety Administration had ordered the company to replace as many as 40 million more Takata air bag inflators.

The faulty airbags can deploy too forcefully, rupture and spray plastic and metal shards at motorists. Iwamura said that the company had booked provisions for all Takata air bag inflators that lack a moisture-absorbing desiccant. The Takata air bag inflators caused the company 436 billion yen in the latest fiscal period and 120 billion yen a year earlier.

The company is facing pressure on its profits as the cost of recalling rises and a stronger yen is also making it difficult for the company to recover. The net income of the company fell to 344.5 billion yen or about $3.2 billion during the one year till the month of March, 2016, the company said in a statement on Friday. The Tokyo-based automaker missed its forecast by 34 percent.