Nissan Recalls 240K Vehicles Due to Risk of Catching Fire
Per AP, Nissan Motor Company NSANY has recalled nearly 240,000 vehicles, globally. The recalled vehicles include cars and sport utility vehicles (SUVs) that have chances of catching fire.
Per Nissan, the anti-lock brake pump — consisting of brake fluid — can leak onto circuit board, which may result in electrical short and fire. The brake fluid leakage is due to defective seals in the anti-lock brake pump. The company has advised customers not to drive the vehicle, if anti-lock brake warning lamp stays on for more than 10 seconds, after starting the engine. Further, Nissan asked customers to park vehicles outdoor and away from other vehicles or structures.
The recall comprises of certain Nissan Pathfinder from 2017 through 2018, 2017 Infiniti QX60, Nissan Maxima of model year 2016 and 2017, and 2015 to 2017 Nissan Murano. The company is estimating that roughly 56% of vehicles might have the risk of catching fire. Earlier, in 2016, a few Murano vehicles were recalled for the same reason. Majority of the recalled vehicles are from the United States, Canada and Mexico.
Nissan Motor Co. Price and Consensus
Nissan Motor Co. Price and Consensus | Nissan Motor Co. Quote
Beginning Oct 15, car dealers will check pump serial numbers and will be replaced if required.
This marks the second recall for Nissan in a month. Earlier, on Aug 31, the company announced that it would recall 166,000 vehicles in the United States and Canada due to defective ignition switches. The models include NV, NV200, NV Taxi, Frontier, Sentra, Versa, Versa Note and Juke. All the affected vehicles are of 2017 and 2018 model years.
Lately, frequency of recalls by automakers increased along with rising vehicle sales. Few safety issues, which have led to recent recalls, consist of hatchback problems, risk of catching fire, brake-related concerns and, of course, faulty Takata airbag deflators.
In the past three months, Nissan’s stock has gained 1.3% outperforming 1.8% decrease recorded by the industry it belongs to.
Zacks Rank & Other Key Picks
Nissan currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the auto space include Advance Auto Part, Inc. AAP, Honda Motor Co., Ltd. HMC and Oshkosh Corporation OSK. Advance Auto and Honda sport a Zacks Rank #1 (Strong Buy) while Oshkosh carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Advance Auto has an expected long-term growth rate of 12.3%. Over the past three months, shares of the company have gained 22.4%.
Honda has an expected long-term growth rate of 3%. Over the past three months, shares of the company have gained 2.1%.
Oshkosh has an expected long-term growth rate of 18.3%. Shares of the company have increased 6.3% in the past three months.
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