Honda says expanded air bag recalls to cost $360mn, no change in guidance

TOKYO: Honda Motor Co said on Friday it expects to spend 44.8 billion yen ($363 million) in quality-related costs to pay for the recall of cars fitted with air bag parts made by Takata Corp after the supplier agreed to an expanded recall in the United States.

Japan's third-largest automaker said there was no change to its dividend and profit forecasts for the current business year through March 2016, since it had set aside sufficient reserves.

A spokeswoman at Honda declined to disclose the number of vehicles involved for the estimated recall cost.

Takata, at the centre of the recall of millions of vehicles equipped with potentially deadly air bag inflators, agreed with US auto safety regulators last month to declare more inflators faulty, prompting automakers to issue additional recalls.