Auto industries biggest problems, presently, are recall related. The number of affected vehicles and the number of recalls in the past two years have been brutal for various Automobile industries. Just when driver safety seemed to be getting better, the massive recalls due to the defective Takata airbags steered the sector uncontrollably toward yet more problems.
Safety recalls and related costs have become a major issue for most automakers. 632 recalls covering about 22 million cars have been announced since 2013. These numbers only increased in 2014. In 2014, there were 60.5 million recalls. That is nearly double of the previous record of 33.8 million in 2004, according to the National Highway Traffic Safety Administration (NHTSA). However, these numbers only cover the recalls in the United States and not globally.
With regards to the Takata airbag recalls, Takata, finally, publically acknowledged that 33.8 million of its airbags are defective. This announcement will increase the number of vehicles and trucks recalls due to the faulty airbags by almost 100%.
In total, 11 automakers were affected by the Takate airbag recalls. These included: Toyota Motor Corp, Nissan Motor Co. Ltd, Ford Motor Co. and Honda Motor Co. Ltd. However; Honda, was the biggest company affected. Each of these companies were affected by the Takate recalls. The recall related repair costs intensify the financial burden of these auto manufacturers