Honda (HMC) Recalls 750K Vehicles Due to Airbag Concerns
Honda HMC has issued a recall of 750,000 vehicles in the United States due to a defect involving airbags. The National Highway Traffic Safety Administration (NHTSA) revealed that the issue pertains to the front passenger seat weight sensor, which may develop cracks and short circuits. This malfunction could lead to the airbag deploying unintentionally during a crash, posing a significant safety risk to occupants.
The affected vehicles encompass a wide range of makes and models, including popular Honda vehicles such as the Pilot, Accord, Civic sedan, HR-V, and Odyssey manufactured between 2020 and 2022. Additionally, models like the 2020 Civic coupe and Fit, as well as the 2021-2022 Civic hatchback and the 2021 Civic Type R and Insight, are included in the recall. The recall extends to select models of the CR-V, CR-V Hybrid, Passport, Ridgeline, and Accord Hybrid manufactured between 2020 and 2021. Acura vehicles affected by the recall include the 2020 Acura MDX, 2022 Acura MDX, 2020-2022 Acura RDX, and 2020-2021 Acura TLX.
According to reports from the safety regulator, Honda has received 3,834 warranty claims related to this issue since June 2020. However, reassuringly, there have been no reports of injuries or fatalities associated with the airbag defect. To rectify the problem, Honda dealers will replace the faulty seat weight sensors at no cost to owners. Notification letters informing affected vehicle owners are expected to be dispatched by Mar 18.
In an attempt to shed light on the origin of the defect, Honda disclosed to the NHTSA that a temporary change in the base material of the printed circuit board for the seat weight sensor occurred after a natural disaster affected one of its subcontractor's manufacturing plants. The alternative material used was identified as potentially exacerbating strain on the circuit board, thereby resulting in the defect.
This latest recall adds to a series of challenges Honda has faced regarding vehicle safety. In the preceding months, the Japanese automaker issued recalls for various reasons.
Last month, approximately 106,000 CR-V hybrid vehicles were recalled due to a missing fuse, posing a risk of battery cable short-circuiting and potential fire or injury during a crash. In December, Honda recalled more than 2.5 million cars in the United States due to a fuel pump defect that could result in vehicle stalling while driving. Simultaneously, an additional 2 million vehicles were recalled globally for the same issue. In November, nearly 250,000 vehicles were recalled due to a defective connecting rod bearing in the engine, which could lead to engine malfunction or stalling during operation.
The recurrence of such safety concerns emphasizes the need for stringent quality control measures throughout the automotive supply chain. As automakers continue to innovate and advance vehicle technologies, it remains imperative to uphold rigorous standards to mitigate potential risks and ensure the safety of consumers on the road.
Zacks Rank & Other Key Picks
Honda currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked players in the auto industry are Goodyear Tire GT, PACCAR PCAR and Oshkosh Corporation OSK, each sporting a Zacks Rank #1.
The Zacks Consensus Estimate for GT’s 2024 sales and earnings suggests year-over-year growth of 2.7% and 2,152.6%, respectively. The EPS estimate for 2024 has improved by 15 cents in the past 30 days. Goodyear has a Value Score of A.
The Zacks Consensus Estimate for PCAR’s 2024 and 2025 EPS has improved by 51 cents and 34 cents, respectively, in the past 30 days. The company surpassed earnings estimates in the trailing four quarters, the average surprise being 17.1%. PACCAR has a Value Score of A.
The Zacks Consensus Estimate for OSK’s 2024 sales and earnings suggests year-over-year growth of 6.7% and 4%, respectively. The consensus estimate for 2024 earnings per share has improved by 8 cents in the past seven days. Oshkosh has a Value Score of A.
You can see the complete list of today’s Zacks #1 Rank stocks here.
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