Thursday, October 23, 2014

Sunk By A Supplier 

Honda and every other auto manufacturer that used airbags from the Takata Corp. is involved in a massive recall.  They have been sunk by a supplier who made a defective part.  The recall will involve tens of millions of dollars, most, if not all, of which will come from Takata.  Takata also will face lawsuits over the defect that will drag on for years.  At issue will be whether Takata knew or should have known that its airbags will blow up under certain circumstances and injure rather than protect a passenger.  One can feel sympathy for the auto builders in this instance.  The recall is for something they didn't do.   The industry has been involved in massive recalls this year and doesn't need another one.  But, it is here, and the auto companies have to deal with it.  The PR departments of the affected manufacturers must be working at full speed to handle both this and the introduction of new vehicles.  It won't help them much to point a finger at Takata.  Consumers drives Hondas, not Takatas..


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