What's Going On With Honda Motor Shares After Issuing Massive Recall?

Honda Motor Company, Ltd. HMC shares are trading higher on Tuesday.

The auto giant has recalled 750,114 vehicles in the U.S. over an issue involving air bags. 

An air bag that deploys unintentionally during a crash can increase the risk of injury, according to certain documents issued by the National Highway Traffic Safety Administration (NHTSA). 

Affected by the recall are specific Honda models such as the Pilot, Accord, and Civic spanning 2020-2022, along with select CR-V and Passport models from 2020-2021.

As a remedy, the company suggested that dealers will replace the seat weight sensors, free of charge. Owner notification letters are expected to be mailed March 18, 2024. 

In a statement submitted to the safety regulator, Honda reported 3,834 warranty claims, noting no reported injuries or fatalities associated with the recall concern since June 2020, Reuters reported.

VinFast Auto Ltd. VFS reportedly recalled approximately 6,000 VF 5 cars sold domestically for the replacement of the combination switch, this morning. 

VinFast stated that the issue stemmed from a design error in the control circuit board provided by the component supplier.

Price Action: HMC shares are trading higher by 1.61% to $34.40 on the last check Tuesday.

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