NEW YORK (TheStreet) -- Honda Motor Co. (HMC - Get Report) shares are tumbling 3.55% to $26.65 on heavy trading volume Wednesday after American Honda said it was recalling 1.7 million new and used vehicles from 2007 to 2015 with Takata air bags.
Dealerships received the recall and stop-sale notice on January 30, according to Automotive News.
The Takata airbag inflators could experience "over pressurization" when exposed to high temperatures and high absolute humidity, in which case they could possibly explode in a crash.
The notice also had a warnings saying that dealerships would be held liable for any claims stemming from selling an unrepaired, affected car.
Additionally, Honda reported weak auto sales for the month of January. Sales fell 1.7% to 100,000 vehicles.
Separately, TheStreet Ratings currently has a "Hold" rating on the stock with a letter grade of C+.
The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and poor profit margins.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: HMCHMC data by YCharts