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Nissan (NSANY) Recalls 54,000 Vehicles with Faulty Airbags

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Nissan Motor Co., Ltd. (NSANY - Free Report) announced that it will recall over 54,000 vehicles due to an air bag issue. It has been detected that the curtain and seat-mounted airbags may abruptly deploy when the door of the vehicle is slammed. This increases the risk of injuries.

The recall will mainly cover the 2012 Nissan Versa vehicles. Nissan believes that the airbag problem has been caused by the degradation of the side impact sensor connector pins.

To fix the problem, dealers will install a new jumper harness and will replace the side impact sensors at no cost to the owner.
 

Automakers regularly announce safety recalls which not only affect consumer confidence in a brand but also add to the expenses.

In Mar 2017, Ford Motor Company (F - Free Report) announced the recall of roughly 32,000 vehicles in North America due to a safety-compliance issue associated with the vehicles’ airbags. The recalled vehicles include 2016–17 Ford Edge and 2016–17 Lincoln MKX built at the Oakville Assembly Plant as well as the 2017 Lincoln Continental built at the Flat Rock Assembly Plant.

Ford will be replacing the driver frontal airbag module in the vehicles for free. The company was informed by Takata that the vehicle airbags could either inflate partially or the cushions might get detached due to misalignment. The problem may result in non-compliance with F/CMVSS 208 and poses the threat of injury to the driver in case of an accident.

Price Performance

Nissan has outperformed the Zacks categorized Auto Manufacturers-Foreign industry over the last three months. While the company’s shares rallied 1.8%, the industry declined 5.3%.


Zacks Rank & Key Picks

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

Better-ranked companies in the auto space include American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) and Honda Motor Co. (HMC - Free Report) . Both companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

For the current year, American Axle and Honda expect earnings growth of around 8.1% and 26%, respectively.

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