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Honda Motor Co., Ltd. (HMC - Free Report) has decided to recall 1.2 million Accord midsize cars, according to a Bloomberg report. A problem in the battery sensor, which can lead to an electric short and even a fire, has prompted the Japanese automaker to take such a decision.

Four cases of engine compartment fires due to the battery sensor-related problem have been reported to Honda. All the cases have been reported from states where salt is used to clear roads during winter.

Per the news, sensors used in the negative terminal of the battery aren’t properly sealed from moisture. Road salt can enter inside and result in corrosion. This can lead to an electrical short and even a fire.

Honda is a leading automobile manufacturer and the largest producer of motorcycles in the world. It has been recalling vehicles frequently over the last few years. The automaker is also the largest customer of the faulty Takata airbags that can explode and shoot out metal fragments in a crashed vehicle. Apart from this, the company frequently announces safety recalls for various reasons. Frequent product recalls not only reduce consumers’ confidence in a brand, but also add to expenses.

Honda has underperformed the Zacks categorized Automotive - Foreign industry in the last three months. Honda’s shares declined 3.4% during this period compared with the industry’s gain of 5.1%.



Currently, Honda carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the auto space are Allison Transmission Holdings Inc. (ALSN - Free Report) , GKN plc (GKNLY - Free Report) and Continental AG (CTTAY - Free Report) . While Allison Transmission Holdings sports a Zacks Rank #1 (Strong Buy), GKN plc and Continental AG carry a Zacks Rank #2 (Buy). You can see  the complete list of today’s Zacks #1 Rank stocks here.

Allison Transmission has an expected long-term growth rate of 11%.

GKN plc has an expected growth rate of around 5.3% in the long term.

Continental has an expected long-term growth rate of 7.8%.

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