Honda funds growing recall
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.