Kawasaki Recalls 39K John Deere Mowers Due to Safety Risks

Kawasaki Motors has recalled about 39,000 John Deere mowers due to fire risks. This recall could impact stock prices for both companies as safety concerns arise.

Date: 03-01-2025

AI Rating: 4

Recall Impact on Stock Prices

Kawasaki Motors Corp. has recalled approximately 39,000 units of John Deere mowers due to potential fire and burn hazards linked to a failure in the voltage regulator of the engines. Such recalls typically create a negative perception among consumers and could lead to a decline in sales, thus affecting revenue growth for both Kawasaki and Deere & Co.

The recall may influence earnings expectations in the short term. If customers lose confidence in the safety and reliability of these products, it could adversely affect both companies' financials. Concerns of safety can lead to lower sales figures and potential costs relating to repairs and addressing the recall, which further impacts profit margins.

Related Recalls

This isn’t the first time Kawasaki has faced such a situation, as they had previously recalled about 68,500 engines used in various equipment, including John Deere products, due to similar hazards. This pattern of recalls may contribute to an ongoing perception of risk regarding the safety of their products, which can negatively impact return on equity (ROE) and may lead investors to adjust their expectations of future profitability.

Stocks: KMX DE