Honda Motor Co., Ltd.’s HMC shares dipped 0.31% to $32.06 on Dec 9 after it announced the recall of over 90,200 passenger vehicles in India. The recalled vehicles include 64,428 Honda City sedans manufactured between Dec 2013 and Jul 2015, and 25,782 Mobilio minivans produced between Jul 2014 and Jul 2015.
Honda is recalling these vehicles to replace the fuel return pipe which has the tendency to come out, leading to fuel leakage.
Vehicle recalls have become a serious concern for automakers in recent years. Last month, Honda announced the recall of Fit LX vehicles of model-year 2015–2016 in the U.S. as the rear grab rail brackets in some of them do not meet the automaker’s design specifications. The company believes that the rear grab rail brackets may hinder the deployment of side curtain airbags in the event of a crash. This creates the risk of injury for passengers.
Honda is recalling 25,367 vehicles to fix the issue. The company discovered the problem during internal testing. However, it has not been notified of any trouble faced by customers due to this issue.
Earlier this year, defective Takata airbag inflators led to a massive global recall. As many as 11 automakers, including the likes of Honda, BMW, Toyota Motor Corporation TM, General Motors Co. GM, Nissan, Ford Motor Co. F, Fiat Chrysler and Mitsubishi Motors Corp., have been affected by the malfunctioning airbag inflators. These can explode, shooting metal fragments and injuring passengers, in case of a car crash.
There have been at least 8 fatalities and 100 injuries globally due to these faulty airbags. Per Takata, nearly 33.8 million of its airbag inflators sold globally are defective. Notably, Honda has been impacted the most by the defect.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment