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Honda (HMC) to Recall 1M Vehicles With Faulty Takata Airbags

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Honda Motor Co., Ltd. (HMC - Free Report) is likely to recall around 1 million older vehicles in the United States and Canada, per Associated Press. The company is likely to recall many of its popular models for the second time as the Takata airbag inflators that were installed at the time of the previous recalls could turn out to be deadly.

Affected vehicles include Honda Accord from 2001 through 2007, CR-V from 2002 through 2006, Civic from 2001 through 2005, Element from 2003 through 2010, Odyssey from 2002 through 2004, Pilot from 2003 through 2008 and Ridgeline from 2006. Other affected vehicles are Acura luxury models — including MDX from 2003 through 2006, EL from 2001 through 2005, TL from 2002 and 2003 and CL from 2003.

Per the transport safety agency, Transport Canada, affected vehicles include the ones that were previously recalled and others with airbags that were replaced after collisions. In fact, Takata used ammonium nitrate to create small explosions to inflate the airbags. But the chemical can deteriorate over time due to fluctuating temperatures and high humidity. It can burn too fast and blow apart a metal container, hurling shrapnel into drivers and passengers.

Over the past three months, shares of the company have outperformed the industry it belongs to. Over this period, shares of Honda gained 0.7% against the industry’s decline of 2.2%.



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

A few better-ranked stocks in the auto space are Ferrari N.V. (RACE - Free Report) , Oshkosh Corp. (OSK - Free Report) and General Motors Company (GM - Free Report) . While Ferrari currently sports a Zacks Rank #1 (Strong Buy), Oshkosh and General Motors carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Ferrari has an expected long-term growth rate of 18.5%. Over the past year, shares of the company have risen 6.2%.

Oshkosh has an expected long-term growth rate of 11.3%. Over the past six months, shares of the company have gained 9.5%.

General Motors has an expected long-term growth rate of 8.5%. Over the past three months, shares of the company have risen 10%.

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