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Daimler (DDAIF) to Recall Mercedes Diesel Vehicles in Germany

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Daimler AG should recall 60,000 Mercedes diesel cars in Germany, per Reuters. Regulators alleged that the software fitted in the cars was aimed at distorting the emission tests. The affected models include Mercedes-Benz GLK 220 produced between 2012 and 2015.

Recently, non-compliance of the emission standards resulted in a large number of recalls. Notably, in March 2019, Fiat Chrysler Automobiles N.V. announced a recall of approximately 965,000 gasoline vehicles that don’t comply with the U.S. emission standards. The flawed vehicles are from the United States and Canada that will require catalytic converter replacements. Also, Jaguar Land Rover recalled 44,000 cars in the U.K. over issues related to carbon dioxide emissions.

The news of this recall by Daimler was first reported by Bild am Sonntag, the German national newspaper. In April, Bild am Sonntag reported that the German auto regulator was investigating the doubtful software used in the Mercedes-Benz GLK 220 CDI vehicles produced between 2012 and 2015. However, Daimler said that it would appeal against the recall decision but it will cooperate with regulators.

In the past six months, shares of the company have outperformed the industry it belongs to. Its stock gained 8.5% in comparison with the industry’s growth of 6.5%.

 


 

Zacks Rank & Stocks to Consider

While Fiat Chrysler currently has a Zacks Rank #2 (Buy), Daimler carries a Zacks Rank #3 (Hold).

A couple of better-ranked stocks in the auto space are Ford Motor Company (F - Free Report) and Fox Factory Holding Corp. (FOXF - Free Report) , each currently carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Ford has an expected long-term growth rate of 7.3%. Over the past six months, shares of the company have gained 30.9%.

Fox Factory has an expected long-term growth rate of 16.4%. Over the past six months, shares of the company have gained 49.1%.

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