Honda (HMC) Recalls 2.5M Vehicles Over Fuel Pump Defect
Honda Motor Co., Ltd. HMC issued a recall for 2.5 million vehicles, including Accords, Civics, CR-Vs, HR-Vs, Ridgeline and Odyssey as well as automaker's luxury division models from Acura such as ILX, MDX, RDX, RLX and TLX form model-year 2018-2020. The affected models also include Honda Insight and Passport form model-year 2019-2020, Clarity PHEV and Honda Fit form model-year 2018-2019, and Accord Hybrid and Acura NSX form model-year 2017-2020.
Per the National Highway Traffic Safety Administration recall notice, the fuel pump inside the fuel tank could fail, which can result in stalling of engine while driving, thus increasing the risk of a crash.
Per Honda, the dealerships will replace the fuel pump module free of cost. The owners of the vehicles will be notified by letters, which are expected to be mailed by Feb 5, 2024.
Honda has issued a total of nine recalls this year. A total of 2,539,902 vehicles have been affected by the latest recall, bringing Honda’s total number of recalls in 2023 to nearly 5 million.
On Dec 13, 2023, Honda recalled around 106,030 CR-V Hybrid vehicles from model-year 2020-2022 due to missing fuses on battery cable that could have caused the cable to short circuit or overheat in a crash.
Zacks Rank & Key Picks
HMC currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Stellantis N.V. STLA, Volvo VLVLY and BYD Company Limited BYDDY. While STLA sports a Zacks Rank #1 (Strong Buy) at present, VLVLY and BYDDY carries a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for STLA’s 2023 sales and earnings indicates year-over-year growth of 12.3% and 11.3%, respectively. The EPS estimate for 2023 and 2024 has increased 6 cents and 33 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings implies growth of 4.2% and 70.6%, respectively, year over year. The EPS estimate for 2023 and 2024 has improved 8 cents and 7 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for BYDDY’s 2023 sales and earnings implies growth of 35.7% and 74.7%, respectively, year over year. The EPS estimate for 2023 has moved up 62 cents in the past 90 days. The EPS estimate for 2024 has inched up a penny in the past 60 days.
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Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report
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