Why Honda Is Upgrading Air-Bag Repair Campaign to Recall

The transcript discusses Honda's decision to upgrade a vehicle issue to a recall, influenced by safety advocates who argue for a nationwide recall of Takata airbags. Takata's financial forecast reveals a significant loss, with the company acknowledging challenges in estimating US damage claims. A New York Times report highlights past testing of airbags by Takata, suggesting data was discarded, raising concerns about the company's practices.

What was the main reason for Honda to change their campaign to a recall?

• To improve vehicle performance

• To address new vehicle issues

• To reduce production costs

• Due to stricter regulations

What did safety advocates suggest regarding the recall of Takata airbags?

• Recall nationwide

• No recall needed

• Recall only in Japan

• Recall only in high humidity areas

What significant challenge did Takata acknowledge in their financial forecast?

• New competitors in the market

• Declining sales in Europe

• Increasing production costs

• Estimating damage claims from the US

What did the New York Times report reveal about Takata's past actions?

• They improved airbag designs

• They ignored airbag issues

• They scrapped plans to address ruptures

• They increased production of airbags

What was the reaction of Takata's shares following the New York Times report?

• Shares were unaffected

• Shares declined

• Shares remained stable

• Shares increased