Honda Motor Co Ltd (ADR) (NYSE:HMC) confessed that it used airbag inflators manufactured by ARC Automotive Inc., which is currently being investigated for probable flaws.
A dark cloud of vehicle recalls has been hovering over the automaker for quite a long time now. The firm was the most affected by vehicle model recalls on account of faulty air bags from TAKATA CORP UNSP ADR (OTCMKTS:TKTDY). Honda has now revealed that it had used airbag inflators from a third party. ARC is facing investigations on account of faulty inflators. Honda issued recalls for vehicles manufactured between the year 2000 and 2001. The company has not revealed the actual number of vehicles recalled. The reason might be because the firm has not yet identified whether it should recall vehicles fitted with the ARC airbag inflators. The checks are still in progress.
Takeshi Miyao, an analyst at researcher Carnorama, pointed out that the current situation is evidence of how hard it is to make inflators that remain consistent with safety standards. Incidences of the Takata airbags fault have sparked more sensitivity from regulators. As a result, they have become stricter on safety measures. The new investigations are as a result of two accidents that were reported to the regulators as reported by the National Highway Traffic Safety Administration on Tuesday.
In one of its statements, ARC announced that it has been made aware of the situation and will cooperate by providing any necessary information. ARC also supplies its inflators to Fiat Chrysler Automobiles NV (NYSE:FCAU) and KIA MOTORS CORP ORD (OTCMKTS:KIMTF), though none of the two automobile companies have reported any recalls.
Other companies like Toyota Motor Corp (ADR) (NYSE:TM) also issued out recalls of their vehicles. Honda’s report indicates that it recalled more than 20 million vehicles on a global scale, to repair the faulty Takata airbags. Most of the repairs were directed to authorized dealers at no charge. So far, eight fatal incidences have been reported in connection to the faulty airbags.
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