Saturday, February 13, 2010

Honda airbag fault fuels Japan's auto woes

Asian Defense News: TOKYO (AFP) - February 12– Honda, Japan's second-biggest carmaker after crisis-hit Toyota, Wednesday recalled more than 400,000 vehicles to fix airbags that it said can explode and spray out potentially deadly metal shards.
The recall, the third related to the defect since late 2008, includes top-selling Accord and Civic cars sold in the United States and Canada as well as models marketed in Japan, Mexico, Taiwan and Australia.
Honda said the defective airbag inflators could rupture, "resulting in metal fragments passing through the airbag cushion material and possibly causing injury or fatality to vehicle occupants".
The expanded recall of 437,763 vehicles covers models made in 2001 and 2002, mostly in North America, and also includes family-friendly models such as the Odyssey and CR-V.
Honda said it knew of 12 incidents involving the defect and one fatality, but added that there had been no new reports since last year.
The latest safety recall adds to the woes of Japan's auto industry, a key export earner of Asia's largest economy, with Toyota making global headlines over its faulty accelerator and brake systems.
"The industry perspective of this is no one likes to see another competitor be put through that," said Mark Reuss, president of GM's North American division.
"We like to have a healthy industry and we like to be able to compete on a level playing field."
Toyota on Tuesday expanded its global recall to over 400,000 of its Prius and other petrol-electric hybrid models. The world's biggest car maker has now pledged to fix 8.7 million vehicles worldwide. Related article: Toyota announces mass Prius recall
Toyota dealers in Japan have started fixing software problems that can make brakes slow to respond in the third-generation Prius, the company's flagship hybrid.
The company will suspend production of Lexus HS250h and Sai hybrids from Saturday, after deciding to stop sales of those models in Japan while Toyota engineers work on improving the vehicles' safety.
Toyota has also said it is recalling more than 7,000 Camry sedans with power steering problems in the United States, while US authorities say they are "reviewing" complaints about steering problems from Corolla drivers.
Company president Akio Toyoda, the grandson of the Toyota founder, has publicly apologised and plans to fly to the United States soon, where his company faces a congressional grilling and a host of lawsuits. Related article: Toyota boss 'expected to testify' in Congress
US Representative Darrell Issa said Wednesday Toyoda should meet personally with US lawmakers eager to "hear directly" from him about the auto giant's woes.
Issa, the top Republican on a House of Representatives committee looking into the company's handling of dangerous defects, said he would ask the panel's chairman to invite Toyoda to Washington to take part in a February 24 hearing on the matter.
"Given the number of outstanding questions surrounding Toyotas relationship with US regulators and in the best interests of moving forward, Id like to help facilitate a dialogue between Mr Toyoda and lawmakers from both parties and both chambers," said the lawmaker.
Angry US consumers and Congress members claim Toyota knew about the dangerous problem of "sticky accelerators" for years but was slow to respond until it was forced into action by federal authorities.
Japan's centre-left government -- which took power last year promising to put the interests of consumers before those of big business -- has also ramped up pressure on Toyota, one of Japan's most iconic companies.
The Asahi Shimbun daily reported that a contrite Toyota had turned down an energy efficiency award from the government in light of the recall troubles.
Hans Greimel, the Asia editor of Automotive News, said Toyota, a company not used to crises, was enduring a "perfect storm" after looking unstoppable during its rise to global dominance. Related article: Toyota crisis hits hometown
"They are having their first operating loss in 70 years. Now their quality has been questioned like never before," he said. "It is a classic fall-from-grace story."

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