TOKYO—Honda Motor Co. said it expects to spend
¥44.8 billion ($363 million) in additional recall-related
costs after it decided to expand recalls over explosive air bags
made by Takata Corp.
The costs will be reflected on Honda's profits from last
financial year that ended in March 2015 due to accounting rules,
spokesman Teruhiko Tatebe said Friday.
Despite the increased costs, Honda said it would stick to its
profit and dividend outlook for the current financial year. In
April, the company said it projects a ¥525 billion net
profit.
Last month, Takata and U.S. safety regulators agreed to expand
recalls by tens of millions of vehicles over air bags that could
rupture and shoot out shrapnel, a problem linked with at least six
deaths.
Honda, Takata's biggest customer, accounts for much of the
recalls that have been taking place since late 2008. It has already
recalled at least around 20 million vehicles globally to replace
Takata-made air bag inflaters.
For the latest round of recalls, auto makers have been
temporarily shouldering much of the costs. In the future, auto
makers and Takata are expected to decide how to split
recall-related costs.
Write to Yoko Kubota at yoko.kubota@wsj.com
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