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Made in China: Honda Recalls 31,000 Accord Sedans

Monday 5:28 am ET

SHANGHAI August 25, 2003; Loretta Ng and Jane Lanhee Lee writing for Dow Jones reported that Japan's Honda Motor Co. will recall about 31,000 Accord sedans manufactured by its China joint venture to repair faulty exhaust pipes.

This is the first time Honda has had to recall vehicles in China, a spokesman at Guangzhou Honda Automobile Co., Honda's joint venture with Denway Motors Ltd. (H.DWY), said Monday.

The Accords being recalled are the 2.0-liter and 2.4-liter sedans produced between Jan. 15 and June 17, the spokesman said, adding that the recall was part of a global recall recently by Honda for similar problems.

While the recall could hurt Honda's image in China, said Yale Zhang, an analyst at market research firm Automotive Resources Asia, the recall wasn't serious because it involved a relatively minor part of the car. "And anyway, there are still huge back orders for Honda's cars," said Zhang.

The Guangzhou Honda spokesman declined to say how much Honda would have to spend on the repairs.