Honda Motors Co (NYSE:HMC) Ready to Replace 2,300 Inflators

Honda Motors Co (NYSE:HMC) is a Japanese public traded firm that deals with the manufacturing of motorcycles, automobiles and other mechanical and electrical products. The company is one of the biggest motorbike firms in the world. Not only this, but Honda Motors Co (NYSE:HMC) is also one of the leading firms that deals with the production of internal combustion engines.

The company was established back in 1959 and as of 2001; it has become the largest automobile company in the whole world.

The company recently hit the headlines of many news channels and internet sites when it announced the replacement of airbag inflators in the cars that it shipped to India in the past years. According to the India office of the company, the replacement is part of company’s global recall with regards to a possible misfit in the inflator, specifically the baffle plate.

According to the reports, Honda Motors Co (NYSE:HMC) will carry out an immense campaign whereby it will focus on the preventive replacement of the inflators that are installed on the driver’s side. The cars whose inflators will be fixed include 63 units of CR-V, 1, 235 Amaze automobiles and 1, 040 Brio ones. Note that these vehicles were manufactured or were brought into the market between the time period of September 2011 and July 2014.

The company released a latest report in which it stated that the campaign has been started in order to assure that the highest possible standards of quality and safety were being met. The company plans to replace the inflators in all the possibly defected cars across India completely out of charge. The owners will not have to pay even a single penny and they will be contacted one by one by the company.

Honda Motors Co (NYSE:HMC) has specifically created a site under its domain name of Indian region so that customers can check the status of their cars. The owners of Honda cars are required to enter their alpha numeric code, the vehicle identification number that consists of 17 characters, onto the site to check whether their cars come under the category of covered vehicles by the campaign.

The company, while shedding light on the reasons as to why it embarked upon the task of starting this campaign, stated that if the baffle plate is incorrectly fitted in automobiles, the pressure inside the inflator can increase to extreme levels during an accident. Such increased pressures can cause serious damage to the container and it can injure the person as well. The company further stated that there has been no such accident happened in India. However, the campaign was started because the company wanted to make sure that its cars were safe to use.

Honda Motors Co (NYSE:HMC), in the last trading session, opened its stocks at a price of $30.80 and closed at a price of $30.82, after hitting the highest figures of $30.92. The company has a market capitalization of $55.59 billion with a (P/E) price to earnings ratio of 10.04. As far as the dividend yield of the company’s stocks is concerned, the figures are reported to be around 2.68 percent.