Honda last week said it will recall 425,825 vehicles, including the Fit, in Japan for flaws in ignition coils and electrical circuits.
The call-back -- the fifth for the Fit and the third for Vezel -- delays the introduction of new models by as long as six months, executive vice president Tetsuo Iwamura said today in a briefing.
Honda will book an additional 5.7 billion yen charge for the latest recall. President Takanobu Ito will take a 20 percent reduction in his monthly pay for three months because of the repeat call backs.
Twelve other executives, including Chairman Fumihiko Ike, will reduce their salaries by 10 percent, the company said last week.
In North America, operating profit fell 15 percent to 38.9 billion yen in the second quarter, while losses narrowed to 7.5 billion yen in Europe.
The carmaker has also recalled more than 5 million vehicles in the US the last two years for flawed air bags made by Takata.
Honda has acknowledged two deaths related to the Takata air-bag defect and is investigating two more.
Takata and Daicel each account for half of the inflators in Honda’s air bags, Iwamura said.
Carmakers expect they will recoup -- at least most of -- the air bag recall expenses from Takata, executives at Nissan and Honda have said. - Bloomberg News