Japanese automaker Honda Motor Company, Ltd. (NYSE:HMC) shares are trading lower premarket on Wednesday. A National Highway Traffic Safety Administration (NHTSA) report disclosed that the company recalled around 1.7 million vehicles.
The company said in a filing with NHTSA that the reason for the recall was a defect in the manufacturing of the steering gearbox worm wheel.
It can swell during operation, which diminishes the grease film thickness between the worm wheel and the worm gear.
Furthermore, the worm gear’s spring preload was set too high, leading to an increased sliding force between the components.
Consequently, the combination of reduced grease film thickness and heightened sliding force results in increased friction between the worm wheel and the worm gear. This increased friction can increase steering effort and difficulty, raising the risk of a crash or injury.
The recall includes several major models like the Honda Civic 4D, Honda CR-V, and Honda CR-V Fuel Cell Electric Vehicle, which span between 2022-2025.
In February 2024, Honda recalled 750,114 vehicles in the U.S. due to airbag concerns, with no reported injuries.
Apart from this, last year, the company recalled 100,000 hybrid vehicles in the U.S., citing fire risks.
Investors can gain exposure to the stock via SPDR S&P Kensho Smart Mobility ETF (NYSE:HAIL).
Price Action: HMC shares are down 1.72% at $31.44 premarket at the last check Wednesday.
Photo via Shutterstock
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