Set-Back for Honda due to Recalls

The CEO of Honda Motors, Takanobu Ito states that due to the several recalls identified in recent Honda cars will cause a set-back to reach the company’s goal of selling 6 million vehicles a year worldwide by March 2017.

Honda has recalled the redesigned Fit subcompact vehicle 5 times in Japan for various issues since it went into the market in September 2013.
The CEO had to take a 20% pay cut for 3 months because of this.

Honda Recall

Due to the repeated recalls, Honda was forced to push back some of the product launches.Honda has recalled nearly 10 million vehicles globally since 2008.  The recalls have prompted Honda to set back vehicle launches including the Honda Legend which is already sold in the U.S. as the Acura RLX. Safety recalls include air bags on Honda cars to have caused deaths and injuries. The CEO said that it’s “painful” to think that the airbags have caused deaths and injuries.

This relates back to  our management class we can connect this to how their is an obvious issue in their supply- chain management process. It seems that if they keeping having these recalls, and the CEO is taking a pay cut makes it evident to us how there is something wrong in their process of building these vehicles. Honda needs to reevaluate their supply-chain process to catch what they are doing wrong in production of these vehicles that is causing this large amount of recalls on vehicles. As an owner of a Honda, I believe Honda should make this issue a priority to fix as soon as possible to save their reputation along with customers. Especially if they have recalled nearly 10 million vehicles globally since 2008, this is something big because it involves safety.

It can be assumed that Honda is not really making their vehicles as safe because the massive amount of recalls and this is one of the main reasons they are set-back on reaching their company goals.  Some questions to think of about Honda :

Do you think Honda should reevaluate their production process?

Can the management do things differently in their current supply-chain process to prevent recalls?




When we discussed forecasting in class, we learned that many businesses have their own approach to achieve their goals and they do so by setting a forecast. However, forecasting is just a prediction. It may or may not reach its outcome.
As the second largest cellular provider in the U.S., AT&T happens to miscalculate their forecasts, which sets them below their profit estimates. It is unfortunate that while AT&T decided to cut prices and provided promotions to their customers, it hurt them quite tremendously financially. AT&Ts projection for revenue growth was 5%, however in 2014 they did not meet these projections.  The result of not meeting the projections were because of a decrease installment plan sign-ups, which resulted in AT&T’s 2014 growth forecast to a range of 3-5 percent.


However, to offset this mistake, AT&T is coming up with new ways to earn more revenue such as providing home security and mobile Internet service for cars. These are just a few examples of the many the company has come up with so far.


Questions to think about:


Will AT&T eventually win back and meet their foretasted revenues if they go by what their existing plans are?