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Honda Motor is
recalling more than 400,000 cars in North America. It's due to a
defect that could cause the cars to roll away if parked incorrectly.
The
recall in the U.S. would include the Accord, Civic and Element models from
2003 and 2004, and the same models in Canada along with the Acura.
Japan's
No.2 said in some situations a part known as the ignition interlock
could fail. A device intended to keep keys from being removed if the
vehicle is not in park.
Separately, Honda will cut production at one of its main Japanese plants from October.
The automaker also expects domestic demand to trail off with government subsidies for eco-friendly cars set to end Sept. 30.
The
end of subsidies is seen potentially triggering a price war with rival
hybrid maker Toyota. Honda is launching the market's cheapest hybrid
in October for about $18,600.
Shares
of Honda, which made a $2.7 billion operating profit last quarter, were
slightly higher by midday Tuesday, as the yen eased mildly against the
dollar.