Honda funds grow­ing re­call

Los Angeles Times - - BUSINESS BEAT -

Honda Mo­tor Co. is set­ting aside an ad­di­tional $363 mil­lion to fund a grow­ing re­call of air bags that can ex­plode with too much force.

The au­tomaker said the ad­di­tional costs would show up in re­vised earn­ings for the fis­cal year that ended March 31. But the costs won’t af­fect the com­pany’s div­i­dend or earn­ings fore­casts, it said in a state­ment.

Honda is Takata Corp.’s largest cus­tomer and so far has re­called about 20 mil­lion inf la­tors world­wide. Ten other au­tomak­ers use Takata inf la­tors and have had to ex­pand their re­calls as well.

Honda is fronting the cost of the re­calls and prob­a­bly will set­tle up with Takata later.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.