While Mitsubishi Motors and Honda Motor expect to book charges from recall plans announced earlier this week, such costs won’t affect their earnings forecasts as they have sufficient reserves to cover them, a Friday report said.
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According to Dow Jones Newswires, DaimlerChrysler affiliate Mitsubishi Motors said it expects to book a charge of 6.6 billion yen to recall 436,469 vehicles worldwide, but added the recall won’t affect its earnings outlook for the current fiscal year to the end of March.
The news agency noted that Mitsubishi said on Thursday it will recall five models: the Galant and Galant Aspire sedans, the Regnum station wagon, the Grandis minivan and the Pajero Mini recreational vehicle due to defects in various parts, such as the ball joints of the front suspension, the window wiper motor and the automatic transmission.
Dow Jones also noted that Honda on Thursday said it expects to book a cost of 860 million yen to recall the Stream minivan, the CR-V sport utility vehicle, the Integra coupe and the Civic Ferio sedan, but there is no change in its latest earnings outlook for the current fiscal year.
The recall of the four models totals 213,209 vehicles sold in Japan and is due to loose bolts that could cause the power steering mechanism to fail, Honda said, according to Dow Jones.
Dow Jones said Honda’s foreign affiliates will decide whether to recall 235,916 CR-Vs, Integras and Civics sold outside Japan – the Stream affected isn’t an export model.
Honda’s estimated costs don’t cover potential overseas recalls, the report added.
