Honda expanded its global recall of cars because of a problem in the airbags to another 437,000 vehicles globally. This adds to the vows of the auto industry that is already suffering from the massive recall announced by the top global car manufacturer Toyota that ran into more than 8 millions. Honda has been increasing the number of recalls since it first announced the fault in the airbags 15 months back. The issue is old but it is gained more focus in the midst of the biggest recall of Toyota.
This massive recall also included some models that date back to 2001 and 2002. However, there is no question about the impact on the future sales and reputation of the Japanese auto major in the international markets. They will be some erosion in the brand value in the developed markets where there are more substitutes for the segments. But in the long run this will increase the trust on the company.
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