Car industry reeling, Honda and Toyota recall millions of vehicles
Honda pulled Civic and Accord built between 2001 and 2002 sold in North America. In a press release, the carmaker said that inflators were at risk of rupturing, "resulting in metal fragments passing through the airbag cushion material and possibly causing injury or fatality to vehicle occupants". The defect has already been linked to 11 incidents and one fatality.
The cars subject to Honda's latest recall include 378,758 units in the US, 41,685 units in Canada, 9,227 units in Mexico, 4,042 units in Japan and the rest in other countries. Company officials said that between November 2008 and July 2009, Honda recalled 514,355 vehicles for the same problem.
In all, Honda has had to recall at least 952,118 units for repairs to flaws caused by problems during production. Honda shares declined 1.63 percent at the close of trading today in Tokyo.
Honda’s troubles come at a time when Toyota, the other Japanese giant, is mired in its own serious problems. Back in October, the Nagoya-based company had to recall 8.67 million vehicles around the world. Yesterday, it said it was recalling 437,000 units of the hybrid Prius for a braking problem.
Toyota President Akio Toyoda, a third-generation car industry executive, has been strongly criticised for failing to cope with the economic crisis and production defects.
Never the less, Japanese Prime Minister Yukio Hatoyama said, “Not just Toyota, but all manufacturers must take early action when they see incidents that could endanger safety.”
Toyota, which employs more than 300,000 people and sold cars to millions of Japanese, remains the flagship of the Japanese car industry. Its crisis has raised the anxiety level in Toyota City, the town near Nagoya (central Japan), where the carmaker has its headquarters.
Founded by Kiichiro Toyoda, the company morphed from a small car shop into a huge carmaker, building a town around the company, shaping all aspects of its life, from leisure time and sports to retirement and vacations.
Some blame Akio Toyoda, the founder’s grandson. Some locals said, “He is like a soldier who has practised firing shots but who has never been into battle.” Still, their criticism is under the cover of anonymity because many fear retaliation. The fate of thousands of families in fact is closely tied to that of the company. In the meantime, the company has laid off many temporary workers, including foreigners.
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01/02/2011
23/09/2004
