Honda Stock Drops as Millions of Vehicles Probed Over Engine Safety Concerns

Honda stock has reversed as the National Highway Traffic Safety Administration launched a probe into engine safety concerns affecting millions of vehicles sold in the US. The investigation is related to connecting rod bearing failures in Honda and Acura vehicles' 3.5-liter V6 engine, which could lead to engine failure and increase the risk of a crash. This comes after a recall earlier this year for potential errors in fuel injection electronic control units. The auto industry is facing challenges with tariff uncertainty and faltering consumer confidence, making recalls a significant risk for auto companies and investors.

The National Highway Traffic Safety Administration (NHTSA) has initiated an investigation into more than 1.4 million Honda vehicles sold in the United States, following reports of serious engine issues. The probe, announced on August 20, focuses on potential connecting rod bearing failures in the 3.5-liter V6 engine of various Honda and Acura models, which could lead to complete engine failure and increase crash risks [1].

The investigation covers the 2018-2020 model year Acura TLX, 2016-2020 Acura MDX, 2016-2020 Honda Pilot, 2018-2020 Honda Odyssey, and 2017-2019 Honda Ridgeline vehicles. The NHTSA received 414 reports of the issue, prompting the regulator to open a new probe to evaluate the scope and severity of the potential problem [1].

This latest investigation comes after Honda recalled 249,000 vehicles in November 2023 due to a possible manufacturing defect in the engine crankshaft, which could cause the connecting rod bearing to wear out prematurely and seize, leading to engine failure [1]. The high volume of engine failure reports in vehicles not covered by the previous investigation has raised safety concerns for the NHTSA [1].

The automotive industry is currently grappling with challenges such as tariff uncertainty and faltering consumer confidence. Recalls, like the one affecting Honda, can significantly impact auto companies and investors. The stock price of Honda Motor Co. Ltd. has reversed in response to the new probe, reflecting investor concerns about potential safety risks and the potential financial impact of the investigation [1].

References:
[1] https://www.reuters.com/business/autos-transportation/us-probes-into-more-than-14-million-honda-vehicles-over-engine-failure-2025-08-25/