Honda posts surprise loss on back of product recalls

Honda yesterday posted a surprise net loss for its fourth quarter as its quality-related costs, mostly to recall Takata-made air bag inflators, nearly quadrupled for the full business year.

Honda posts surprise loss on back of product recalls

For the three months to the end of March, Japan’s third-largest automaker posted a net loss of 93.4bn yen (€755m), compared to the profit of 115.35bn yen expected by analysts.

Honda said its full-year results absorbed the impact of roughly 267bn yen more in quality-related costs than its original estimate after the US Transportation Department ordered an expansion of recalls to replace potentially deadly air bag parts made by Takata.

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