The automaker initially set a seemingly attainable goal of six million vehicles sold annually by 2017, however chief executive Takanobu Ito now wants workers to focus solely on restoring quality, rather than expanding sales volume, according to a Bloomberg report.
Honda’s directors late last year ordered Ito to take a pay cut, after the company’s all-new Fit was hit with a fifth recall and the Takata crisis continued to deepen. The HR-V launch was also delayed in the US market, reportedly due to trouble at manufacturing facilities in Mexico.
The National Highway Traffic Safety Administration later levied a $70 million fine against Honda, accusing the company of under-reporting warranty claims and thousands of injury and death reports.
The costs of fixing recalled vehicles has soared past $400 million and could climb even higher. Japanese supplier Takata has slowly ramped up parts production, but automakers are still looking elsewhere — potentially with higher component prices — to fix the vehicles in a timely manner.
After dropping the 2017 goal, company has cautioned that it will not include a global sales goal in its next midterm plan.
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