Chip Fault Leads to Honda Recall - Analyst Blog

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According to Reuters, Honda Motor Co. Ltd. ( HMC ) recently recalled 342K Odyssey minivans and 63.4K Acura MDXs to fix a malfunctioning computer chip in the airbag control unit. The company revealed that the chip deploys the airbags in the driver and passenger seat on receipt of some electrical noises from parts of the car, even in the absence of any collision.

While Honda is not aware of any car accidents due to this problem, some hand injuries have been reported. As a result, the company has recalled almost 405,400 cars to install an electrical signal filter, which will solve the problem.

Honda has recalled the 2003 and 2004 model year Odyssey minivans from the U.S. and Canada and the 2003 model year Acura MDX from the U.S., Canada, Japan and Australia.


Last month, Dongfeng Honda Automobile Co., the Chinese arm of Honda, announced the recall of all Siwei CR-V vehicles manufactured from Mar 2, 2010 to Aug 30, 2012. The recall was made to fix a defective front shock absorber piston rod. According to the General Administration of Quality Supervision, Inspection and Quarantine, the defective rod can break in some cases, leading to safety issues. Thus, Honda recalled almost 408,000 SUVs.

However, Honda is not the only automaker plagued by product recalls. Earlier this week, Ford Motor Co. 's ( F ) Indian arm Ford India Pvt. Ltd. reportedly recalled more than 166,000 Figo subcompact hatchback and Classic compact cars in India.

Ford recalled the vehicles to fix potential issues regarding the rear twist beam (RTB) and power-assisted steering (PAS) hose. Moreover, last month Ford recalled 370,000 units of Ford Crown Victoria, Mercury Grand Marquis and Lincoln Town Car sedans manufactured from 2005 to 2011 in the U.S and Canada to replace a steering shaft.

General Motors Company ( GM ) also recently recalled the diesel version of Chevrolet Sail. The automaker is recalling 4,000 vehicles in India to fix a faulty engine part.

Further, Toyota Motor Corporation ( TM ) recalled 780K vehicles for the second time earlier this month to fix a problem in the rear tie rod. The company recalled 18K 2010 Lexus HS 250h autos and 760K Toyota RAV4 SUV of model years 2006 to 2011 in Aug 2012, following several complaints.

Before that, Toyota recalled 369,000 vehicles worldwide, including about 235,000 in the U.S., roughly 74,000 in Japan and 37,500 in Europe to fix a hybrid-system problem.

Honda currently carries a Zacks Rank #2 (Buy).



FORD MOTOR CO (F): Free Stock Analysis Report

GENERAL MOTORS (GM): Free Stock Analysis Report

HONDA MOTOR (HMC): Free Stock Analysis Report

TOYOTA MOTOR CP (TM): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: F , GM , HMC , TM

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