NHTSA opens investigation into 1.4M Honda vehicles over potential engine failure
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 11 2024
0mins
Should l Buy HMC?
NHTSA Investigation: The National Highway Traffic Safety Administration has launched an investigation into 1.4 million Honda vehicles from 2016 to 2020 due to potential engine failure caused by a manufacturing defect in the crankshaft, particularly affecting connecting rod bearings.
Previous Recalls and Complaints: Honda had previously recalled 250,000 vehicles for a similar issue but has since received 173 complaints regarding failures in vehicles not included in that recall, with one crash reported but no injuries.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy HMC?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on HMC
About HMC
Honda Motor Co Ltd is a Japan-based company principally engaged in the motorcycle business, the automobile business, the financial service business and the life creation business. The Company operates through four business segments. The Motorcycle segment is engaged in the research and development, production and sale of motorcycles, all-terrain vehicles (ATVs), side-by-side vehicles and related parts. The Automobile segment is engaged in the research and development, production and sale of automobiles and related parts. The Financial Service segment is engaged in the sales financing and leasing of its products. The Power Products and Other Business segment is engaged in the research and development, production and sale of power products and related parts.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Shifts in Automotive Advertising During Super Bowl
- Declining Ad Spend: According to iSpot, automakers' share of Super Bowl ad minutes has plummeted from 40% in 2012 to just 7% by 2025, reflecting tightening budgets and uncertainty in the automotive sector, which diminishes brand visibility and competitive edge.
- Super Bowl Advertising Strategy: With only General Motors, Toyota, and Volkswagen expected to air ads totaling around two minutes, this indicates that the automotive industry is still seeking effective advertising strategies amidst high costs and market volatility to ensure a return on investment.
- Cost Pressure on Ads: The average cost for a 30-second Super Bowl ad is $8 million, leading many automakers to opt out of participation, reallocating their advertising budgets to other channels, which impacts their overall market promotion strategies.
- Future Advertising Directions: Automakers are shifting towards more sports and streaming advertisements; despite the reduction in Super Bowl ads, they still account for 60% of spending on live sports, demonstrating adaptability and innovation in their advertising approaches.
See More
KKR ESTABLISHES A$600M STRATEGIC PARTNERSHIP WITH HMC FOR ENERGY TRANSITION
Energy Transition Partnership: A strategic partnership has been formed to facilitate a $600 million investment in energy transition initiatives.
Collaboration with HMC: The partnership involves collaboration with HMC, aiming to enhance energy sustainability and innovation.
See More
HMC CAPITAL: KKR to Invest Up to A$603 Million in Preferred Equity, Including A$355 Million in Initial Funding
Investment Overview: A deal involving up to $603 million in preferred equity investment by KKR has been announced.
Funding Breakdown: The investment includes a $355 million upfront funding component, among other financial arrangements.
See More
Rivian Automotive Faces Financial Challenges Amid Growth Potential
- Sales Performance Review: Rivian's revenue reached $1.5 billion in Q3 2025, marking a 78% increase year-over-year; however, the company still reported a $2.75 billion loss for the first nine months, indicating ongoing financial struggles.
- Market Competition Analysis: In the U.S. EV market, Tesla holds a commanding 43.1% market share, while Rivian's sales are less than half of second-place Chevrolet's, highlighting its insufficient market penetration amid fierce competition.
- New Model Launch: Rivian plans to introduce the more affordable R2 SUV starting at $45,000, aimed at attracting a broader consumer base, yet the high price of its R1 model continues to limit market acceptance.
- Gross Margin Challenges: Although Rivian achieved a gross profit of $24 million in Q3, its gross margin stands at a mere 2%, significantly lower than Tesla's 17%, indicating a pressing need for improvement in profitability.
See More
Rivian Launches More Affordable R2 Model
- Sales Performance: Rivian ranked sixth in EV sales for 2025, surpassing Honda but still trailing Chevrolet, indicating limited market share despite some growth in sales figures.
- New Model Launch: The company plans to introduce the R2 SUV starting at $45,000, aimed at expanding its customer base and attracting more consumers amid intensifying competition in the EV market.
- Financial Condition: Although revenue hit $1.5 billion in Q3 2025, a 78% increase, the company still reported a $2.75 billion loss for the first nine months, highlighting its fragile profitability with a gross margin of only 2%.
- Market Outlook: The end of the EV tax credit has dampened overall EV sales in 2025, leaving Rivian's future uncertain; while it has potential, the investment risks remain high.
See More
Consumer Reports' Top New Cars for 2026 Feature Electric Boost
- Electrification Trend: The 2026 Consumer Reports' best new cars list features all models as hybrids or electric vehicles, marking a significant shift towards electrification that meets consumer demands for both sustainability and cost-effectiveness.
- Hybrid Power Advantage: While full EV sales in the U.S. have declined due to the loss of federal tax credits, hybrid vehicle sales are rising, with automakers like Ford, General Motors, and Toyota increasing their hybrid offerings to meet market demand.
- Diverse Model Range: The list includes models like the Honda Civic Hybrid and Toyota Camry Hybrid, with the Camry's 2.5L engine achieving an impressive 48 mpg in testing, showcasing the balance of performance and efficiency in hybrid vehicles.
- Market Response: Consumer Reports highlights that hybrid vehicles not only offer quicker acceleration and quieter cabins but also lower long-term ownership costs, reflecting a growing market preference for efficient and eco-friendly vehicles, thus driving transformation in the automotive industry.
See More
Shifts in Automotive Advertising During Super Bowl
- Declining Ad Spend: According to iSpot, automakers' share of Super Bowl ad minutes has plummeted from 40% in 2012 to just 7% by 2025, reflecting tightening budgets and uncertainty in the automotive sector, which diminishes brand visibility and competitive edge.
- Super Bowl Advertising Strategy: With only General Motors, Toyota, and Volkswagen expected to air ads totaling around two minutes, this indicates that the automotive industry is still seeking effective advertising strategies amidst high costs and market volatility to ensure a return on investment.
- Cost Pressure on Ads: The average cost for a 30-second Super Bowl ad is $8 million, leading many automakers to opt out of participation, reallocating their advertising budgets to other channels, which impacts their overall market promotion strategies.
- Future Advertising Directions: Automakers are shifting towards more sports and streaming advertisements; despite the reduction in Super Bowl ads, they still account for 60% of spending on live sports, demonstrating adaptability and innovation in their advertising approaches.
See More
KKR ESTABLISHES A$600M STRATEGIC PARTNERSHIP WITH HMC FOR ENERGY TRANSITION
Energy Transition Partnership: A strategic partnership has been formed to facilitate a $600 million investment in energy transition initiatives.
Collaboration with HMC: The partnership involves collaboration with HMC, aiming to enhance energy sustainability and innovation.
See More
HMC CAPITAL: KKR to Invest Up to A$603 Million in Preferred Equity, Including A$355 Million in Initial Funding
Investment Overview: A deal involving up to $603 million in preferred equity investment by KKR has been announced.
Funding Breakdown: The investment includes a $355 million upfront funding component, among other financial arrangements.
See More
Rivian Automotive Faces Financial Challenges Amid Growth Potential
- Sales Performance Review: Rivian's revenue reached $1.5 billion in Q3 2025, marking a 78% increase year-over-year; however, the company still reported a $2.75 billion loss for the first nine months, indicating ongoing financial struggles.
- Market Competition Analysis: In the U.S. EV market, Tesla holds a commanding 43.1% market share, while Rivian's sales are less than half of second-place Chevrolet's, highlighting its insufficient market penetration amid fierce competition.
- New Model Launch: Rivian plans to introduce the more affordable R2 SUV starting at $45,000, aimed at attracting a broader consumer base, yet the high price of its R1 model continues to limit market acceptance.
- Gross Margin Challenges: Although Rivian achieved a gross profit of $24 million in Q3, its gross margin stands at a mere 2%, significantly lower than Tesla's 17%, indicating a pressing need for improvement in profitability.
See More
Rivian Launches More Affordable R2 Model
- Sales Performance: Rivian ranked sixth in EV sales for 2025, surpassing Honda but still trailing Chevrolet, indicating limited market share despite some growth in sales figures.
- New Model Launch: The company plans to introduce the R2 SUV starting at $45,000, aimed at expanding its customer base and attracting more consumers amid intensifying competition in the EV market.
- Financial Condition: Although revenue hit $1.5 billion in Q3 2025, a 78% increase, the company still reported a $2.75 billion loss for the first nine months, highlighting its fragile profitability with a gross margin of only 2%.
- Market Outlook: The end of the EV tax credit has dampened overall EV sales in 2025, leaving Rivian's future uncertain; while it has potential, the investment risks remain high.
See More
Consumer Reports' Top New Cars for 2026 Feature Electric Boost
- Electrification Trend: The 2026 Consumer Reports' best new cars list features all models as hybrids or electric vehicles, marking a significant shift towards electrification that meets consumer demands for both sustainability and cost-effectiveness.
- Hybrid Power Advantage: While full EV sales in the U.S. have declined due to the loss of federal tax credits, hybrid vehicle sales are rising, with automakers like Ford, General Motors, and Toyota increasing their hybrid offerings to meet market demand.
- Diverse Model Range: The list includes models like the Honda Civic Hybrid and Toyota Camry Hybrid, with the Camry's 2.5L engine achieving an impressive 48 mpg in testing, showcasing the balance of performance and efficiency in hybrid vehicles.
- Market Response: Consumer Reports highlights that hybrid vehicles not only offer quicker acceleration and quieter cabins but also lower long-term ownership costs, reflecting a growing market preference for efficient and eco-friendly vehicles, thus driving transformation in the automotive industry.
See More
