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Honda to Recall Cars in Japan on Faulty Daicel Airbag Inflator

Honda Motor Co., Ltd. HMC is recalling 143,000 vehicles in Japan as their airbags are equipped with faulty inflators produced by Daicel Corp., according to sources. One such airbag failed to deploy in a crash, leading to the recall.

Honda confirmed that the propellant used in these airbag inflators is inappropriate and has improper velocity. These Daicel inflators are placed in airbag modules, which are produced by Nihon Plast Co. After identifying the defect, Daicel has stopped producing the inflator. Additionally, Daicel is cooperating with Honda in the recall of the affected vehicles.

This recall is not linked to previous recalls associated with faulty airbags supplied by Takata Corp. Honda is the largest customer of the defective Takata airbags that can explode and shoot out metal fragments in a crashed vehicle.

In Feb 2016, Honda announced the recall of 2.23 million new vehicles related to the defective Takata airbag inflators in the U.S. This takes the total number of recalled Honda vehicles due to this issue in the U.S. to 8.51 million.

Apart from this, Honda regularly announces safety recalls. Frequent product recalls not only reduce consumers’ confidence in a brand, but also add to expenses.

Zacks Rank:

Honda currently carries a Zacks Rank #3 (Hold).

Some better-ranked automobile stocks include Federal-Mogul Holdings Corporation FDML, Cooper Tire & Rubber Co. CTB and Superior Industries International, Inc. SUP. All the three stocks sport a Zacks Rank #1 (Strong Buy).

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HONDA MOTOR (HMC): Free Stock Analysis Report
 
SUPERIOR INDS (SUP): Free Stock Analysis Report
 
FEDERAL MOGUL-A (FDML): Free Stock Analysis Report
 
COOPER TIRE (CTB): Free Stock Analysis Report
 
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