msnbc.com news services
updated 3:39 p.m. ET Jan. 29, 2010
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Honda Motor Co. is recalling 646,000 Fit hatchbacks, including 140,000 in the United States, because of a faulty window switch, after a child died when fire broke out in a car last year.
A Honda spokeswoman says the recall affects the 2007-2008 models of the Fit, which is sold in other countries as the Jazz and City. The recall affects Asia, Latin America, Europe, South Africa and North America. Customers will be notified by mail once the automaker comes up with a fix for the problem.
The announcement came as investors, suppliers and consumers weighed the impact of an unprecedented halt in U.S. production by Toyota, the world's No. 1 automaker.
Honda's move, as well as Toyota's recall due to problems with unintended and dangerous acceleration, come at a bad time for the industry as it struggles to lure buyers back to showrooms after a sales slump that helped drag U.S. rivals General Motors and Chrysler into bankruptcy.
Toyota this week suspended North American sales and production of eight models including its best-selling Camry after regulatory pressure, and widened the recall to China and Europe. A Toyota spokeswoman said the company was still checking on whether any vehicles are affected in Latin America, the Middle East and Africa.
Japan's largest company, studied for its devotion to quality, could recall about 8 million vehicles in total — more than the number of cars and trucks it sold worldwide in 2009.
In Tokyo, some worried about the knock-on effects to Japan's image and economy.
"If Toyota has hard times, there's a high probability that also Japan will," said Takeo Namekata, a 62-year-old office worker. "Particularly, trade will suffer."
Honda's recall added to concerns that the safety-conscious image of Japanese manufacturers would be threatened.
"The Japanese have built their image on reliability, the fact that they make bullet-proof vehicles," said IHS Global Insight analyst Carlos Da Silva.
"It's not that their vehicles are worse than the others, (the recalls are) just showing maybe that their vehicles are like the others. The race to cost cuts and the competition between all the brands is so fierce that even the mighty Japanese are doing things that are not as reliable as they were."