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Honda Expands U.S. Auto Recall for Transmission Flaw (Update2)

June 30 (Bloomberg) -- Honda Motor Co. is widening a recall of vehicles in the U.S. and Canada to 1.14 million units, among its largest, covering Accord and Acura cars that have the same transmission fault that triggered a light-truck recall this year.

Japan's third-largest automaker is voluntarily recalling 536,950 vehicles, with V-6 engines and 5-speed automatic transmissions, in addition to those already announced in April. The company is also recalling 79,531 units in Japan to fix faulty transmissions and fuel tanks, starting tomorrow.

The inspections and repairs will cost Honda about $63 million, in addition to the $153 million being spent on the light-truck portion of the recall, spokesman Andy Boyd said. In Japan, Honda is spending about $8.5 million on its recall.

Honda was runner-up to Toyota Motor Corp. in an annual reliability study of three-year-old cars and trucks by J.D. Power & Associates in the U.S. Honda, Toyota and Nissan Motor Co., which benefit from consumer perceptions that they build better vehicles, increased their U.S. market share to 24.1 percent last year from 22.2 percent, according to Autodata Corp.

Honda's North American recall includes 2003- and 2004-model Accords, 2000- through early 2004-model Acura TL sedans, and 2001- through 2003-model Acura CLs, Boyd said. In April, the company recalled 600,000 U.S. and Canadian Odyssey minivans, and Pilot and Acura MDX sport-utility vehicles with the same transmission.

Shares of Honda, which ranks fifth in U.S. sales, fell as much as 1.1 percent to 5,230 yen in Tokyo and were traded at 5,250 yen as of 2:52 p.m.

Japanese Recall

The Japanese recall covers 68,000 vehicles with gearbox defects, including Odyssey and Lagreat minivans. The Tokyo-based carmaker will also take back 11,531 Inspire sedans with faulty fuel pumps, spokesman Kazuhiro Suda said.

The problem results from insufficient lubrication of a transmission shaft that can overheat, potentially damaging gear teeth or causing the gears to break, Honda said in a statement.

The U.S. unit of Tokyo-based Honda has had only one reported incident of a transmission failing in the car models recalled and no reported accidents or injuries, Boyd said.

``We are acting out of an abundance of caution to ensure that this doesn't become an issue for our customers,'' Tom Elliot, Honda's U.S. executive vice president, said in a statement. Customers will be notified by letter starting mid-July.

In most cases, the gears will be inspected and the flow of transmission fluid will be modified, Honda said. If damage from insufficient lubrication is found, the transmission will be replaced, the company said. Recall repairs typically are paid for out of reserves set aside for that purpose.

The Accord is Honda's best-selling model, with annual sales in the U.S. and Canada exceeding 400,000.

American Honda Expands Voluntary Transmission Recall to Certain Honda and Acura Automobiles

Wednesday June 30, 1:00 am ET

TORRANCE, Calif., June 30 /PRNewswire/ -- American Honda Motor Co., Inc. today announced that it will expand its existing voluntary recall of light truck models for a potential transmission defect to include certain Honda and Acura passenger cars. The voluntary action involves approximately 499,000 Honda and Acura passenger vehicles with V6 engines and 5-speed automatic transmissions. Affected models include certain 2003 and early 2004 model Accord V6 sedans and coupes, 2000-2003 and early 2004 Acura TL sedans, and 2001-2003 Acura CL coupes.

The company has found only one confirmed instance of a transmission failure related to this defect in its passenger cars, with no accidents or injuries. "We are acting out of an abundance of caution to ensure that this doesn't become an issue for our customers," said Tom Elliott, executive vice president of American Honda Motor Co., Inc.

The situation is created by insufficient lubrication of the transmission's secondary shaft second gear that can occur under certain driving conditions. Prolonged operation under these conditions can lead to heat build-up and under certain circumstances may eventually result in chipped or broken gear teeth or breakage of the gear. In the event of a chipped or broken tooth, the owner will likely experience abnormal noise from the transmission and seek repairs. In rare instances, this condition may lead to gear breakage and possible locking of the vehicle's transmission, creating a potential safety hazard.

Owners of affected vehicles will be contacted via mail and will be asked to take their vehicle to an authorized Honda or Acura dealer to be repaired free of charge. Customer mailings will begin in late July. In most cases, the repair involves a simple gear inspection, which is accomplished without removing or disassembling the transmission, and a modification to increase the flow of transmission fluid to the affected gear. If there is any indication of damage to the gear, the dealer will replace the complete transmission assembly. Customers concerned about the condition of their vehicle may visit Honda's Ownerlink website at www.ahm-ownerlink.com. Customers may also contact their local Honda or Acura dealer or call Honda customer service at 1-800-999-1009 or Acura customer service at 1-800-382-2238.



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Source: American Honda Motor Co., Inc.

Honda's North American recall includes 2003- and 2004-model Accords, 2000- through early 2004-model Acura TL sedans, and 2001- through 2003-model Acura CLs, Boyd said. In April, the company recalled 600,000 U.S. and Canadian Odyssey minivans, and Pilot and Acura MDX sport-utility vehicles with the same transmission.


> So if you buy a car used and bring it in to a dealership is the recall still free to get fixed?