Chief executive of Honda Motor Company believes the car maker could possibly miss its target of 6 million vehicles in sales annually worldwide by the end of the fiscal year in March 2017 because of several recalls.
CEO Takanobu Ito is concerned the vehicle company will not meet its target of 6 million sales by the end of March 2017’s fiscal year. Honda sold 4.3 million cars worldwide by March 2014 and it is possible to miss the target set by him two years ago.
The CEO said his mind is set on the phrase ‘6 million vehicles’. In a news conference in Tokyo he stated that Honda’s priority is the happiness of its customers for their services and products. This means the CEO is more concerned about the quality of Honda’s vehicles over the target of selling 6 million cars.
Since its launch in September 2013 the redesigned Fit was recalled by Honda five times in Japan for several problems. As a result to this Mr. Ito took a 20% cut in pay for three months. The recalls dragged along some launches of products, including the newly remodeled Legacy, which is sold in the U.S. as Acura RLX.
Japan’s third-biggest vehicle maker is subject to another wave of recalls. Honda took the biggest hit in a series of recalls from 10 auto makers regarding potentially explosive airbags built by Takata Corp. The airbag inflators can possibly shoot shards of plastic and metal at people in the car in an event of a crash. Car companies and regulators worked together to figure out what the source of the problem is. This issue is connected to four deaths. Since 2008, Honda recalled almost 10 million cars worldwide.
Takanobu Ito said it is “painful” to think the airbags found on Honda vehicles are the cause of injuries and deaths on Monday, in his first appearance in front of the media.
“We are, as are other companies, conducting regional recalls in the southern states of the United States and analyzing the data. What we need to do first is to get those results and take appropriate action.”