TOKYO – Honda Motor Co. is reporting a 93.4 billion yen ($860 million) loss for January-March, as the Japanese automaker is hit by costs for a massive air-bag recall and an unfavorable shift in exchange rates.
Tokyo-based Honda reported an 81.9 billion yen profit in the same quarter of 2015.
Honda is the biggest customer of Japanese air-bag maker Takata Corp., which is recalling millions of defective air-bags whose inflators can explode with too much force.
Honda said Friday quarterly sales rose 5 percent to 3.66 trillion yen ($34 billion) as vehicle sales grew.
For the fiscal year ended March 2016, Honda's profit plunged 32 percent to 344.5 billion yen ($3.2 billion) as quality-related expenses and the strong yen offset gains from cost cuts and strong performance in the North American market.