Honda and Toyota Motor recall more than 5.6 million cars worldwide

Honda Motor، the Japanese automaker is recalling about 4.5 million cars worldwide over risks of fuel pump failure while، Toyota Motor said it would recall 1.12 million vehicles worldwide، mainly in the United States، to fix a faulty sensor that could cause air bags to not deploy as designed and the recall includes 2.54 million vehicles in the United States and comes after the automaker previously recalled 628 thousand U.S. vehicles in 2021 and 136 thousand cars in 2020 for the same issue.

Honda Motor issued recalls earlier this month over the same issue in China and Japan as Honda dealers will replace the fuel pump module، the automaker said in a filing with the National Highway Traffic Safety Administration and Honda plans to notify owners in early February of the recall، although Honda said it had no reports of injuries but 4،042 warranty claims related to the issue since 2018.

Honda Motor affirmed that the recall includes various models

Honda Motor affirmed that the recall includes various models such as the 2018-2020 model year Honda Accord، Civic، CR-V، HR-V، Insight، Ridgeline، Odyssey، Passport and various Acura models، including the ILX، MDX، RDX، RLX، TLX and NSX vehicles.

Honda Motor indicated that the eplacement parts have greater density and expanded clearance as the announcement comes a day after Honda recalled more than 106 thousand CR-V hybrid vehicles due to the risk of fire or injury in a crash caused by an overheated battery cable or short circuit.

Toyota Motor shares slump about % 4

Meanwhile، like Honda Motor، Toyota Motor، Japan's biggest automaker، shares slump on safety scandal at Daihatsu vehicle recall by about % 4 underperforming the benchmark Nikkei 225 average which fell 1.6%.

Toyota Motor shares slumped on Thursday as Japan's transport ministry inspected a subsidiary over safety concerns dating back decades and as the world's top-selling automaker separately announced a recall of 1.1 million vehicles as Daihatsu said on Wednesday it did not know when it would resume shipments، but that the impact on its earnings would be substantial.

Honda Motor shares slumped by about 3%

Honda Motor shares slumped on Thursday by about 3% and so did Toyota Motor as a day earlier، Toyota's small-car unit، Daihatsu Motor، said it would halt shipments of all of its vehicles indefinitely after discovering more safety-inspection irregularities.

An independent committee said it had found issues involving 64 models، including almost two dozen sold under Toyota's brand and it had been investigating the unlisted automaker after it said in April that it had rigged side-collision safety tests carried out for 88 thousand small cars.

The impact of the recall on Toyota's earnings would likely be limited

Analysts said the impact on Toyota's earnings would likely be limited given the parent company's size، as a one-month suspension of production، for example، would equal 120،000 vehicles and translate to a revenue reduction of 240 billion yen ($1.68 billion) for Toyota، Nomura auto analyst Masataka Kunugimoto wrote in a report.

Toyota Motor thinks that a bigger impact could be on Daihatsu's suppliers as the company's supply chain in Japan comprises 8،316 companies that made 2.21 trillion yen in annual sales from Daihatsu، Teikoku Databank said in a report and added that shares in parts manufacturer Metalart، which has strong ties with Daihatsu، plunged 10%.

Daihatsu's infraction drew criticism from the government

Daihatsu's infraction drew criticism from the government، with the transport ministry saying it would consider administrative penalties including revoking Daihatsu's production certification depending on the outcome of its investigation.

Chief Cabinet Secretary Yoshimasa Hayashi told reporters that the recall of Toyota Motor and Honda Motor is an extremely regrettable case that undermines the trust of automobile users and is a misconduct that affects the very foundation of the automobile certification system، while Daihatsu has said it would consider financial support and damages for its suppliers.

Toyota said it would recall 1.12 million vehicles worldwide، mainly in the United States، to fix a faulty sensor that could cause air bags to not deploy as designed and shares in Toyota affiliate and parts supplier Aisin، which manufactured those sensors and is a major supplier for Daihatsu، lost 3.9% nearly.