🎁 💸 Warren Buffett's Top Picks Are Up +49.1%. Copy Them to Your Watchlist – For FreeCopy Portfolio

Honda in talks with other suppliers for Takata air bag fix - WSJ

Published 21/11/2014, 22:06
© Reuters. A Honda dealership sign is shown at a car lot in Carlsbad, California
HMC
-
ALV
-
TRW
-

DETROIT (Reuters) - Honda Motor Co (T:7267) is in talks with two air bag suppliers to help it stock replacement parts for defective Takata Corp <7312.T> air bags, the Wall Street Journal reported on Friday, citing people aware of the planning.

On Thursday, Takata's senior vice president for global quality assurance, Hiroshi Shimizu, told a U.S. Senate panel the company may not be able to keep up with demand for replacement parts.

About 16 million cars with Takata air bags have been recalled worldwide, with more than 10 million of those in the United States.

Shimizu said that even if the company ramps up production of replacement kits beyond the current pace of 300,000 a month, it may still not have enough parts. "Even if we increase to 450,000, maybe still that's not speedy enough," he said.

David Friedman, deputy administrator of the U.S. National Highway Traffic Safety Administration (NHTSA), told the Senate committee his agency is in touch with two other suppliers to determine whether they are able to make replacement parts.

Friedman agreed with comments made by a senator on the panel that at a rate of 450,000 replacement parts per month, it would take two years to fix all of the possibly defective air bags in U.S. cars that have been recalled.

Friedman told senators that it is not easy for a supplier other than Takata to make air bags that would fit into recalled cars and ensure they are safe.

"We are in contact with two different air bag suppliers," Friedman said on Thursday. "We are asking them what their capacity is, what their compatibility is. There may need to be tests involved to ensure, because each air bag is tuned for each car, that they will be safe."

If the Takata recalls are expanded, as some senators said they want, even more help from outside Takata would be needed, said Scott Upham, analyst at Valient Automotive Market Research.

"A nationwide recall of both Takata driver and passenger inflators would affect over 18 million vehicles globally and require over 36 million inflator replacement kits," Upham said on Thursday.

© Reuters. A Honda dealership sign is shown at a car lot in Carlsbad, California

He added Takata competitors TRW Automotive (N:TRW), Autoliv Inc (N:ALV) and Daicel Corp <4202.T> would be required to help make all those kits by the end of 2015.

(Reporting by Bernie Woodall; Editing by Peter Galloway)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.