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Honda to recall over 2m vehicles in US, China
by Staff Writers
Tokyo (AFP) Aug 5, 2011

Honda Motor said Friday it will recall more than two million vehicles in the United States and China to update the software that controls their automatic transmission.

Honda said in a press release on its US site that the vehicles in the voluntary recall will include Accord, CR-V and Element models.

No injuries or deaths have been reported, the statement said.

Honda China said in a statement on its website it had notified the nation's quality watchdog that from Monday, it would recall 760,515 cars to update the software that controls their automatic transmission.

The auto giant said the vehicles in the recall would include Accord, Odyssey and Spirior models, manufactured between July 2004 and November 2009.

A bearing in the automatic transmission system was not built with sufficient strength and as a result it may emit an abnormal noise or cause the engine to stall under certain gear shift operations, Honda said.

Similar Honda models are sold in Canada, Europe and other markets. Altogether, 2.49 million Honda models installed with the faulty transmission are involved, Kyodo quoted Honda officials as saying.

They said the affected Honda models are not sold in Japan.

Honda has received reports of an abnormal transmission noise and transmission malfunctions but there have been no reports of accidents, the company said.

The automaker in late July recalled about 200,000 passenger cars globally due to defective engine parts.

The move also comes after the car giant was forced to call back about two million vehicles in February and December and is the latest in a series of recalls to hit Japan's auto industry.

Japan's car giants have seen millions of recalls in the past year, but none have been more affected than Toyota, the world's biggest auto maker.

Toyota became mired in crisis when it recalled nearly nine million vehicles between late 2009 and February last year due to brake and accelerator defects linked to deadly accidents that tarnished its image of reliability.

As criticism mounted of its slow response and bureaucratic inflexibility, Toyota tightened its recall policy and has pulled around 16 million units since late 2009 over a range of issues.

Honda has now recalled more than six million vehicles since February 2010 over a range of different issues.




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GM's China sales down 1.8% in July
Shanghai (AFP) Aug 5, 2011 - General Motors said Friday its sales in China, the world's largest auto market, fell 1.8 percent from a year earlier to 173,398 vehicles in July on a drop in sales of commercial vehicles.

For the first seven months of the year, the US auto giant and its joint ventures sold a record 1.45 million vehicles in China, up 4.4 percent from the same period last year, the company said in a statement.

"GM's China sales in July were down 1.8 percent from the same month last year due to the drop in industry sales of commercial vehicles, which impacted its SAIC-GM-Wuling and FAW-GM joint ventures," it said.

Sales at SAIC-GM-Wuling -- a three-way tie-up between GM, the nation's largest auto maker SAIC Motor and China's Liuzhou Wuling Automobile -- fell 14.0 percent to 77,944 units in July from 90,658 units a year earlier.

Sales at FAW-GM, its light commercial vehicle joint venture with China's FAW Group, were 3,353 units in July, down 39.7 percent from 5,560 units sold during the same month last year.

However, domestic sales at Shanghai GM, its passenger car joint venture with SAIC, rose 14.4 percent on year to 91,818 units.

China, which overtook the US to become the world's top auto market in 2009, has become increasingly important for global players such as GM. Auto sales in China rose more than 32 percent last year to a record 18.06 million units.

But the sector overall has since lost steam after Beijing phased out sales incentives such as tax breaks for small engine vehicles, originally implemented to ward off the impact of the global financial crisis.

The China Association of Automobile Manufacturers said it expects sales to grow five percent in 2011 compared with its earlier forecast of 10-15 percent growth -- much lower than the more than 32 percent rise recorded last year.

China's auto sales rebounded in June -- rising 1.4 percent year-on-year to 1.44 million units -- after falling for two straight months.





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Japan quake helps GM profits soar in Q2
New York (AFP) Aug 4, 2011
Supply problems at earthquake-hit Japanese automakers helped General Motors nearly double profits in the second quarter, pushing up US sales and market share, company results showed Thursday. With giants Toyota and Honda hobbled by factory shutdowns in Japan after the March 11 disaster, GM's US market share surged to more than 20 percent while it jacked up vehicle prices. Earnings also g ... read more


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