Quantcast

Honda (HMC) to Recall Nearly 97K Avancier Models in China


Shutterstock photo

Honda Motor Co., Ltd.HMC has announced that it is going to recall 96,900 Avancier models in China due to a cold-climate engine issue, per Reuters. Honda Avancier is a mid-sized crossover sports utility vehicle (SUV), which is manufactured at either of the two local joint ventures of Honda.

Further, the company is checking whether the same fault has affected its other two models - UR-V crossover SUV and Honda Jade. If the company gets confirmation regarding the same fault, it will announce actions to deal with the issue. Earlier, in 2018, the same issue impelled the automaker to recall 130,000 CR-V SUV models and 294,500 Civic cars in the country.

Engines in the faulty vehicles collect an abnormal amount of un-combusted petrol in its lubricant oil pan, which result in a gasoline odor inside the car or lights up the check-engine option in the car.

Honda Motor Co., Ltd. Price and Consensus

Honda Motor Co., Ltd. Price and Consensus | Honda Motor Co., Ltd. Quote



Increased number of quality issues has slumped Honda's sales in China. In the month of July, China's sales declined 7.8% year over year to 105,960 vehicles. Moreover, during seven months - ending in July, the company's sales have slumped 6.6% year over year to 715,060 vehicles in the country.

Price Performance

In the past three months, Honda's stock has declined 8.6%, underperforming 6% decrease recorded by the industry it belongs to.

Zacks Rank & Other Key Picks

Honda currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the auto space are Meritor, Inc. MTOR , CarGurus, Inc. CARG and Fox Factory Holding Corporation FOXF . Meritor and CarGurus presently carry a Zacks Rank of 2 while Fox Factory sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Meritor has an expected long-term growth rate of 3%. Over a year, shares of the company have gained 12%.

CarGurus has an expected long-term growth rate of 5%. Shares of the company have risen 62% in the past year.

Fox Factory has an expected long-term growth rate of 15.8%. Over a year, shares of the company have gained 60.4%.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


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

Fox Factory Holding Corp. (FOXF): Free Stock Analysis Report

Honda Motor Co., Ltd. (HMC): Free Stock Analysis Report

Meritor, Inc. (MTOR): Free Stock Analysis Report

CarGurus, Inc. (CARG): Free Stock Analysis Report

To read this article on Zacks.com click here.

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



This article appears in: Investing , Business , Stocks
Referenced Symbols: FOXF , HMC , MTOR , CARG



More from Zacks.com

Subscribe






Zacks.com
Contributor:

Zacks.com

Equity Research










Research Brokers before you trade

Want to trade FX?