Honda (HMC) Recalls Nearly 500,000 Vehicles Over Safety Issue

Honda Motor Co. HMC is recalling some of its latest light vehicles and SUV models in United States and Canada due to manufacturing issues that could prevent front seat belts from latching properly. Overall, 448,613 vehicles are covered by the recall in the United States.

The models that are part of the recall are 2017-2020 CR-V, 2018-2020 Odyssey, 2018-2019 Accord and Accord Hybrids, 2019-2020 Acura RDXs and the 2019 Insight.

In a report posted by U.S. safety regulators, Honda said, “With continuous use, the buckle channel surface coating may deteriorate over time and the release button may shrink against the channel at low temperatures, increasing friction. This can result in issues with the seat belt buckle latching.”

If the buckle of the seat belt does not latch properly, the risk of injury in the case of a crash increases. So far, Honda has not received any reports of injury or death related to the issue.

If needed, Honda dealers will replace the front seat belt buckle release buttons or the buckle assemblies for free. The notification will be sent via letters to the owners starting Apr 17.

Zacks Rank & Key Picks

HMC currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A few better-ranked players in the auto space are Mercedes-Benz Group AG MBGAF, Bridgestone BRDCY and Wabash National WNC, all of which sport a Zacks Rank #1.

Mercedes-Benz develops, manufactures and sells passenger cars, including premium and luxury vehicles. The Zacks Consensus Estimate for MBGAF’s 2023 sales implies year-over-year growth of 4.02%.

Bridgestone is a Japanese tire manufacturer. The Zacks Consensus Estimate for BRDCY’s 2023 sales and earnings implies year-over-year growth of 0.24% and 11.24%, respectively.

Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings implies year-over-year growth of 13.06% and 28.89%, respectively.

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