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Nissan (NSANY) Recalls 346K Vehicles Over Takata Airbag Defect

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Nissan Motor Co. (NSANY - Free Report) will recall 346,000 vehicles worldwide to replace the risky Takata airbag inflators that could explode and hurl shrapnel, per The Associated Press. The recall is due to begin on Feb 10, 2020.

The airbag inflators can explode after long-term exposure to high humidity, extreme temperatures and temperature cycling due to propellant degradation. An inflator explosion may cause the driver or other occupants to be hit by sharp metal fragments, resulting in serious injury or death.

The recall includes several Maximas from 2001 through 2003, Sentras from 2002 through 2006, Pathfinders from 2002 through 2004, and Versas from 2007 through 2011. The 2001 to 2004 Infiniti I30 and I35s, 2002 to 2003 QX4s, 2003 to 2008 FX35 and FX45s, and 2006 to 2010 M35 and M45s are also included.

Most vehicles part of this recall are in North America, Europe, the Middle East and Latin America. Dealers will replace the front-passenger airbag inflators, free of charge.

Shares of Nissan have underperformed the industry it belongs to over the past year. Over this time frame, it has declined 32.5% against the industry’s rise of 2.4%.

The Nissan front passenger inflators are among the 10 million from 14 different automakers recalled by Takata. The latest recall is the final phase in the series of recalls that the now-bankrupt firm had agreed to undertake in a 2015 settlement with U.S. safety regulators. Reportedly, the 10 million inflators are among the 70 million in the United States that Takata was supposed to recall in compliance with the National Highway Traffic Safety Administration (“NHTSA”) accord. This will likely bring to close the largest series of automotive safety recalls in the U.S. history.

Zacks Rank & Stocks to Consider

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

Some better-ranked stocks in the Auto-Tires-Trucks sector, include Blue Bird Corporation (BLBD - Free Report) , BRP Inc. (DOOO - Free Report) and SPX Corporation (SPXC - Free Report) , each carrying a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Blue Bird has an estimated earnings growth rate of 25.47% for 2020. The company’s shares have appreciated 8.1% in a year’s time.

BRP has a projected earnings growth rate of 19.75% for the ongoing year. Its shares have gained 55.6% over the past year.

SPX has an expected earnings growth rate of 8.09% for the current year. The stock has surged 76.4% in the past year.

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