Honda Motor Co., Ltd. 's HMC shares dipped 0.91% to $32.51 on Nov 6 after it announced the recall of Fit LX vehicles of model-year 2015-2016 in the U.S. as the rear grab rail brackets in some of them do not meet the automaker's design specifications. The company believes that the rear grab rail brackets may hinder the deployment of side curtain airbags in the event of a crash. This creates the risk of injury for passengers.
Honda is recalling 25,367 vehicles to fix the issue. The company discovered the problem during internal testing. However, it has not been notified of any trouble faced by consumers due to this issue.
Vehicle recalls have become a serious concern for automakers in recent years. This year, defective Takata airbag inflators led to a massive global recall. As many as 11 automakers, including the likes of Honda, BMW, Toyota Motor Corporation TM , General Motors Co. GM , Nissan, Ford Motor Co. F , Fiat Chrysler and Mitsubishi Motors Corp., have been affected by the malfunctioning airbag inflators. The defective airbags can explode, shooting metal fragments and injuring passengers, in case of a car crash.
There have been at least 8 fatalities and 100 injuries globally due to these faulty airbags. Per Takata, nearly 33.8 million of its airbag inflators sold globally are defective. Notably, Honda has been impacted the most by the defect.
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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 Nasdaq, Inc.
