Honda Recalls 383,000 Vehicles - Analyst Blog

Honda Motor Co. (HMC) has announced that it would recall 383,000 vehicles sold in the U.S. in order to fix a faulty ignition system that is turning the engine off without being placed in park. According to the National Highway Traffic Safety Administration, the fault increases the possibility for the vehicles to roll away.

The recall includes 197,000 units of Accord compact cars and 117,000 units of Civic compact cars, both from the 2003 model year. It also includes about 69,000 units of Element compact crossover sports utility vehicles from the 2003 and 2004 model years.

Honda has revealed that it is aware of few accidents, including one that resulted in a minor injury, related to the defective ignition system. Honda anticipates the recall to begin in late September.

Automotive safety recalls have become the talk of the town after Toyota Motor Corporations' (TM) announcement of the largest-ever global recall of more than 8.5 million vehicles since October last year. The Japanese automaker’s recall was related to problems such as faulty accelerator gas pedals and slipping floor mats as well as defective braking systems.

The string of recalls has led Toyota to face numerous personal injury and wrongful death lawsuits in federal courts. The U.S. government has also imposed the highest-ever fine of $16.4 million on Toyota, accusing it of a deliberate delay in recalling the vehicles by hiding its flaws even though manufacturers are legally obligated to notify the U.S. safety regulators within five business days once they come to know of a safety defect.