Published On: Fri, Jun 26th, 2015

Honda Releases Updated Operating Profit After Recall


Honda has been one of many automakers affected by faulty Takata airbags.

Honda Motor Co announced on Friday restated numbers of its financial results for the fiscal year ended in March, accounting for costs associated with the expanded recall of cars equipped with Takata Corp. airbags which have been linked with eight deaths.

The automaker released an updated operating profit of 606.88 billion yen ($4.92 billion) in comparison to 651.68 billion yen which was stated in April. The new numbers indicate a 19 percent fall from the previous fiscal year.

Tokyo-based Takata who has been responsible for the faulty airbags last month agreed to double their US recall to more than 30 million vehicles made by some of the world’s biggest automakers making its recall the biggest of its type in history.

Officials at Takata have said they are yet to identify the exact cause however most recent studies suggest that climate and humidity are associated with the issues.

On Tuesday Takata chairman and CEO Shigehisa Takada apologised for the crisis in his first public appearance since it began.

Earlier this month Honda stated that it would restate its earnings after Takata, who is its top airbag supplier, agreed to an expanded recall in the United States last month costing an additional 44.8 billion yen than originally estimated.

Regulators believe the component is responsible for eight deaths which have all been in Honda cars.

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