Wednesday, February 10, 2010

Honda: Trying to hide in Toyota's shadow?

In the wake of Toyota's recent disastrous recall, Honda has announced that it will expand its 15-month-old global recall for faulty air bags by 437,000 vehicles. The recall, originally announced in November 2008, involved fewer than 4,000 cars and was expanded again in July of 2009 to include approximately 440,000 vehicles. The automaker is aware of 12 incidents linked to the problem, none of which have occurred after July 2009. Honda claims that it look this amount of time to run the tests and come to solid conclusions about the problem, prompting their expansion of the recall.*

But is the timing too coincidental? Considering Toyota's crisis which has caused tireless media attention and likely government investigation, Honda may have possibly stepped up to the podium when it did for a few potential reasons (not exhaustive or mutually exclusive by any measure):

First, one of the biggest issues with the Toyota recall is their delayed response. Toyota hasn't really given a good, solid, reason WHY it took them so long to act. Perhaps Honda was looking to avoid this same question? Toyota arguably knew there was a problem and it was only a matter of time until the ticking time bomb ran out. Perhaps Honda felt the same way?

Second could be that the Toyota recall has brought heightened sensitivity to anything having to do with recalls. Perhaps a problem that they did not consider "recall-worthy" prior to the Toyota escalation was worth proactively addressing as to avoid a potential situation similar to that of Toyota's.

Or, they knew it was coming (and were going to handle it in what would be considered a timely fashion) and thought that perhaps announcing the anticipated recall during the current Toyota debacle would divert negative media attention away from the Honda recall (as they are intimately preoccupied with the Toyota situation) and/or generate good-will toward the company for being more proactive than Toyota.

Though the automaker insists the Toyota recall had no impact on their decision on expand their own recall, I find this very hard to believe. All of a sudden after months of investigating the potential cause of the problem to determine whether further action must be taken, Honda decides to announce their expansion right in the heart of Toyota's media attention?? Doubtful. Perhaps Honda is trying to hide Toyota's shadow. Even if that is the case, can't say I blame them.

*Details about the recall taken from Associated Press article which can be found at http://finance.yahoo.com/news/Honda-adds-437000-cars-to-apf-2428558261.html?x=0

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