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Honda (HMC) Recalls Odyssey Minivans for Flawed Door Latch

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Honda Motor Co., Ltd. (HMC - Free Report) has announced that it is recalling 122,000 Odyssey minivans globally, per AP. While driving, the sliding doors of the vehicles may open that makes driving dangerous. The minivans manufactured between 2018 and 2019 are covered in the recall, which majorly consists of vehicles in the United States and Canada.

Per the company, some parts of the vans’ sliding doors can stick, which prevent those to close securely. On receiving the notification by late December about the defect regarding power sliding doors, customers can take their vans to dealers, where the latches are going to be replaced.

This is not the first recall issued by Honda in 2018. In September, the company issued a recall of approximately 1.4 million cars due to defective front passenger-side airbags manufactured by Takata.

Honda Motor Co., Ltd. Price and Consensus

 

Of late, automakers across the globe are frequently recalling vehicles to fix software or manufacturing defects. These recalls not only hurt the company’s profit but also damage its reputation.

Price Performance

Over the past month, Honda’s stock has gained 2.8% outperforming 1.1% increase recorded by the industry it belongs to.

 



Zacks Rank & Other Key Picks

Honda currently carries a Zacks Rank #2 (Buy). A few other top-ranked stocks in the auto space include Allison Transmission Holdings, Inc. (ALSN - Free Report) , Oshkosh Corporation (OSK - Free Report) and Tower International, Inc, . Allison Transmission currently sports a Zacks Rank #1 (Strong Buy), while Oshkosh and Tower International carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Allison Transmission has an expected long-term growth rate of 10%. Shares of the company have increased 3.9% over the past month.

Oshkosh has an expected long-term growth rate of 14.6%. Shares of the company have rallied 19.1% over the past month.

Tower International has an expected long-term growth rate of 8%. Over the past month, shares of the company have gained 17.5%.

Will You Make a Fortune on the Shift to Electric Cars?

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With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

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