Honda Motor Co. (HMC) announced that it would recall 1,156 units of 2012 Civic compact car due to its defective fuel line. The recall would include many unsold units of the vehicle, which were put on sale earlier this spring.
The automaker revealed that the vehicles’ fuel line could possibly leak due to a manufacturing defect. However, it has not yet received any reports of injuries or fires related to the defect.
Honda will begin notifying the customers about the recall from May 27. It will repair the fuel lines free of cost.
This is the second time in the year that Honda has recalled Civic due to the same problem. In March, the automaker recalled 21,700 units of the vehicle that belong to the 2011 model year.
Honda revealed that a plastic case that covers a valve in the fuel pump module could break or crack in the Civic. This, in turn, could result in a fuel leak in a rollover crash, thereby leading to a fire. More than 18,000 Civics were recalled in the U.S. and more than 3,600 units in Canada.
Automotive safety recalls were brought into focus by media after Toyota Motors’ (TM) announcement of the largest-ever global recall of about 11 million vehicles since September last year. The automaker made greater than 15 recalls, more than any other automaker. They were related to problems associated with faulty accelerator gas pedals, slipping floor mats and defective braking systems.
Since the beginning of 2010, Honda recalled more than 2 million vehicles that include Accord, Civic, Odyssey, CR-V, Pilot, Acura TL and Acura CL in the U.S. as well as the Inspire, Saber and Lagreat in Japan.
In 2011 till date, Honda’s largest recall included a million units of its five-door hatchback subcompact car, Fit, in the U.S. due to a problem with their lost motion springs.
Honda, a Zacks #3 Rank (Hold) stock, posted a 38% fall in profit to ¥44.55 billion ($536 million) or ¥24.72 per share (30 cents per share) in the fourth quarter of the fiscal year ended March 31, 2011 from ¥72.18 billion or ¥39.78 per share in the same quarter of prior fiscal.
The decline in profit was attributable to unfavorable currency translation effects, higher selling, general and administrative (SG&A) expenses and the tsunami and earthquake in Japan. These more than offset the positive impact from cost reduction measures, lower R&D expenses, increase in sales volume (except in the Automobile segment) and model mix, and operating income related to licensing agreements.
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