Honda Motor Co. is probably going to release its best profit for the months of July to September ever since the financial crisis that took place worldwide. However, a slide in the recalls of vehicles is trying to delay new models’ roll-out, crimping the growth in the sales of the domestic market.
The third biggest maker of cars in Japan apologized last week for its domestic recall, fifth this time, of the Fit hybrid subcompact that it has, signalling a cut on the pay of Takanobu Ito, the CEO, as well as a dozen other executives. Honda mentioned that it is going to examine its car development processes again, a step which is going to have their debuts delayed.
Recalls of the Fit come better than over five million units of cars that Honda’s called back over unlinked issues in the US with the airbags of Takata Corp, which are potentially defective and which have also been related to the deaths of four people in the single-biggest market of Honda.
The Fit hybrid was first recalled by Honda in October 2013, which is only one month after it had its launching, for the defective control of a transmission system that is newly developed.