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.
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?