- Fiat Chrysler is recalling over 800,000 vehicles for emissions violations.
- Honda is recalling about 1.1 million cars with Takata air bag inflators.
- Air bag maker Takata is also involved in the largest recall in U.S. history.
Two automotive giants, Honda and Fiat Chrysler, have issued recalls that affect a total of nearly 2 million vehicles. Honda announced on March 12 its voluntary recall of over 1 million cars on March 12, and media outlets reported on March 13 that Fiat Chrysler would recall hundreds of thousands of cars in the U.S.
Honda Recall of Takata Air Bags
Honda (HMC) has said it will recall about 1.1 million of its Acura and Honda vehicles that have Takata air bag inflators. The air bags include an inflator that, when deployed, can rupture, causing sharp metal pieces to fly through the air and potentially injure the driver and passengers.
The inflator manufacturer, Takata, is already responsible for the largest automotive recall in U.S. history, comprising approximately 37 million vehicles. Takata agreed to a $1 billion settlement with the U.S. Department of Justice in 2017. The company was charged with concealing the defect from customers.
Fiat Chrysler Emissions Recall
Fiat Chrysler Automobiles (FCAU) will recall 862,520 vehicles that do not meet U.S. emissions standards, according to Reuters. Affected vehicles include certain model years of the:
- Dodge Journey
- Chrysler 200
- Dodge Avenger
- Dodge Caliber
This is not the first emissions issue Fiat Chrysler has had to rectify. In January, the company agreed to pay about $800 million in fines and costs related to charges that the company’s diesel vehicles did not follow emissions rules.
What Consumers Should Do About the Fiat Chrysler and Honda Recalls
Affected owners of Honda and Acura vehicles will be provided with details of the Honda recall beginning in April. Honda has said it will provide eligible customers with free rental cars while they wait for replacement parts or repairs.
Owners of vehicles included in the Fiat Chrysler recall can have their cars repaired at no charge. The company has already begun contacting customers who are affected.
Recall Effects on Honda Stocks and Fiat Chrysler Stocks
Fiat Chrysler stock dropped as much as 2.1 percent after the recall was announced on Wednesday, March 13, but rebounded to close down 0.9 percent, at $14.36. The company will not be fined for the violation.
The Honda recall, announced Tuesday, March 12, does not seem to have dramatically impacted the company’s stock, which rose by 0.22 percent to close at $27.40 per share the next day. Takata, the inflator manufacturer, filed for bankruptcy in 2017.
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