Honda Shares Dip In Tokyo on Vehicle Recall

TOKYO Reuters reported that shares in Honda Motor Co fell on Monday after Japan's second-largest automaker said it would recall 2.57 million vehicles worldwide at a cost of 22.7 billion yen ($182 1835625580

The shares, which hit a lifetime high earlier this month on the automaker's recent record-setting results and bullish forecasts, fell as much as 1.4 percent before ending the morning 1936028531 down 1.07 percent at 5,570 yen.

The key Nikkei average was up 0.64 percent.

Honda said last week that it would recall certain Honda and Acura models to replace a faulty ignition switch that could cause the engine to stall.

Of the 2.57 million vehicles affected, 743,417 are in Japan, while around 1.34 million are in the United States.

Honda said the U.S. recall covered certain 1997 to 2000 models of the Accord, Civic, Prelude, CRV and Odyssey, along with some 1999 Acura TL sedans and 1997-99 CL coupes.

The automaker said electrical contacts within the switch can wear prematurely, making the vehicles harder to start and possibly causing them to stall.

It said less than 0.3 percent of the affected vehicles in the United States had experienced the problem, and no accidents or injuries had been reported.

The recall is one of the largest ever for Honda, and among the larger recalls announced by an automaker this year.

Japan's fourth-largest automaker, Mitsubishi Motors Corp, and its largest tire-maker, Bridgestone Corp, have seen their results battered in recent years by the fallout from product 1919247201