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Honda (HMC) Expands Recall for Takata Airbags in China

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Honda Motor Co., Ltd.’s (HMC - Free Report) Chinese joint venture, Dongfeng Honda Automobile Co., has announced the recall of another 1 million vehicles to replace possibly defective Takata airbags. The vehicles covered under the latest recall include Honda CR-V utility vehicles, Civic and Platinum Rui sedans, and Civic hybrids produced by the joint venture between 2007 and 2011.

The Japanese automaker is the largest customer of the faulty Takata airbags that can explode and shoot out metal fragments in a crashed vehicle. Earlier this month, Honda had announced the recall of 784,000 vehicles in Japan due to possibly faulty airbags.

In May, Honda declared that it will recall another 2.2 million Honda and Acura vehicles in the U.S. to replace Takata passenger front airbag inflators. This takes the total vehicles to be recalled in the U.S. due to faulty passenger-side airbag inflators to 4.5 million units.

The recalls in the U.S. were a result of last month’s National Highway Traffic Safety Administration’s (NHTSA) order to recall another 35−40 million Takata airbag inflators in the country by 2019. The malfunctioning Takata airbags can explode, shooting metal fragments and injuring passengers, in case of a car crash.

Honda currently carries a Zacks Rank #5 (Strong Sell). Some better-ranked automobile stocks include Lear Corp. (LEA - Free Report) , Superior Industries International, Inc. (SUP - Free Report) and Oshkosh Corporation (OSK - Free Report) . All the three stocks sport a Zacks Rank #1 (Strong Buy).

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