Honda recalling 962,000 cars

This is a major setback for Honda Motor Co. which is already facing production disrupts due to the natural calamities that Japan suffered few months back. Honda Motor Co. will be recalling Fit compacts, CR-V and City models all over the world.

Along with these, the Japanese car manufacturer is also recalling its 26,000 CR-Z hybrid models in Japan, U.S, and Canada and also from other countries because of “defective programming of electronic-control units”.

Reason behind the recall

Honda Motor Co. said that because of these problems no serious injuries or accidents have been caused. However, Honda’s spokeswoman said that nine cases has been registered in Japan and China in which the vehicles caught fire because of the power-window problem and in two different cases people have suffered light burns by touching the overheated switches.

This is not the first time this year that Honda has recalled its vehicles. In early August, Honda recalled about 2.3 million vehicles because of automatic transmissions problems.

Major Setback

Recalling about 962,000 will be a setback for Japan’s third largest automaker. According to company’s estimate, in Japan only this recall will cost them about ¥1.29 billion ($16.8 million). However, Honda has not revealed how much it will cost them in all over the world.

Apart from monetary expenses, this recall is also a holdup on the company’s development which is recovering and looking to catch up with its rivals after the earthquake and Tsunami. Also this recall is coming when yen is weaker than dollar and other currencies which make company’s export expensive and increase their burden.

Because of the recall, Honda’s shares crashed significantly and closed at about 4 percent lower on Monday.