Honda cuts profit forecast as airbag recall weighs heavy

Honda on Friday cut its full-year net profit forecast as the Japanese automaker faces soaring recall costs, including those from an exploding airbag crisis linked to at least five deaths.

The downgrade came as Honda said late Thursday that it was probing a deadly crash in the United States possibly linked to exploding airbags made by embattled supplier Takata, which has sparked the recall of millions of vehicles worldwide.

Takata has been plunged into a public relations crisis over the deaths. The Tokyo-based company is facing lawsuits, calls for a criminal probe, and accusations of "deception and obfuscation" over the potentially deadly defect.

On Friday, Honda, Japan's third-biggest automaker, said it was cutting its fiscal year to March net profit forecast by 3.5 percent to 545 billion yen ($4.6 billion), citing "quality-related expenses" and falling sales in Japan and the world's biggest vehicle market China.