• 01
  • February
    2010

Another major auto maker has announced a product recall, in a move to protect consumers from personal injury and to shield the auto maker from potential personal injury law suits.

Honda Motor Co. (HMC) announced on Friday that it, too, would be recalling a total of 646,000 automobiles worldwide.

Honda's recall, however, has to do with the window switches that might overheat if exposed to liquid, which in turn could cause smoke or even catch fire. The fire hazard came to light after a fatal accident in South Africa last year, where a child was killed after the car caught on fire.

Earlier this week, Toyota announced a recall of 2.3 million vehicles, its second major recall in months. Toyota's earlier recall was prompted by a San Diego fatal accident last year.

In fact, the San Diego area accident has not been Toyota's only car accident attributable to the faulty accelerators.  There have been 19 deaths reported nationwide.

Toyota's liability?  Some accelerator pedals are becoming stuck, due to a defect in the design, causing the vehicle to accelerate and making it difficult to slow down or to shut off the vehicle.  After a car accident and complaints, Toyota took initiative and recalled several million vehicles.  Subsequently Toyota halted production on 8 models, in an attempt to resolve the problem. 

Although this recall initiative may have short-term publicity repercussions for the auto makers, there may be a long term gain to be had here.  Toyota has a clear issue with the accelerator pedals and Honda has documented cases of fire caused by product malfunction.  Both of these scenarios could subject the car companies to heavy and expensive lawsuits at the hands of personal injury attorneys.  Indeed, San Diego personal injury attorneys have their work cut out for them, as California is a state with many freeways and much driving. 

Honda is now following in Toyota's footsteps.  It will be interesting to see which car company will be next in the list.

A wise move, to limit the company's liability, in spite of reputational issues.

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