Honda drops target to sell 6 million vehicles annually by 2017

Article by Christian A., on February 20, 2015

Honda Motor Co. is not aiming anymore to sell 6 million vehicles annually by 2017, as the Japanese carmaker’s effort to achieve that target contributed to the quality lapses that led to huge recalls in 2014. Honda chief executive Takanobu Ito also announced that the carmaker won’t set a global sales target in its next midterm plan.

Honda once again trimmed its forecasted profit for the current fiscal year following recalls linked to defective Takata Corp. airbags and to new hybrid systems in the Fit compact car and Vezel SUV. These quality issues have: forced Honda to delay plans to introduce new models; caused its CEO to take a pay cut; and prompted the carmaker to forecast lower profits in three years.

Ito has vowed to Honda back to basics and indicated that the carmaker will no longer focus business expansion as its main goal. Ito said that Honda does not plan to rescue Takata financially and will collaborate with its suppliers to determine the root cause for the airbag defects as it seeks to put an end to the crisis.

In 2014, Honda recalled around 5.4 million vehicles with possibly defective Takata airbags in the United States. The defective airbags have been linked to deaths of four persons in the US and of a pregnant woman and her unborn child in Malaysia – all involving Honda vehicles.

The US government had fined Honda $70 million fine for its failure to report over 1,700 death and injury incidents to regulators in a span of 11 years.

Topics: honda, sales

If you liked the article, share on:

Pin It

Comments

Recommended

South Korean car company SsangYong recently revealed sketches of their upcoming SUV. We’re not always impressed by Korean car designs, but this one looks quite promising. Yup, it is the...
by - March 26, 2017
Twenty-eight years after the company was first launched by Toyota, which was initially targeted to the United States market only, Lexus has already made its way to over 70 countries....
by - March 26, 2017
Last year was probably Porsche’s best year ever in terms of sales. Their factory in Stuttgart delivered 237,778 cars in total, which represents a six percent increase compared to the...
by - March 26, 2017
Lamborghini has disclosed that it is looking into the possibility of releasing electric vehicles. With the Volkswagen Group revealing that it will be releasing electric vehicles within several years, there...
by - March 25, 2017
Daimler AG, through its Smart division, has disclosed that its two electric models, the Smart ForTwo and the Smart ForFour are now open for orders in Germany. Official market launch...
by - March 25, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries