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Mercedes (DDAIF) Recalls Nearly 1M Vehicles Over Braking Hitch

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Mercedes-Benz Group AG (DDAIF - Free Report) has announced a recall of 1 million vehicles worldwide due to a potential problem with the braking system. Per Germany’s federal transport authority, nearly 993,407 vehicles, about 70,000 in Germany itself, are being covered under the latest recall. It will affect models of the SUV series ML and GL, and the R-Class luxury minivan, built between 2004 and 2015. The recall has impacted nearly 300,000 SUVs in the United States manufactured between 2006 and 2012.

Corrosive brake boosters can, in the worst case, interrupt the connection between the brake pedal and the braking system. A malfunction in the braking system implies that a sudden application of brakes may lead to mechanical damage, and in extreme cases, accidents resulting in injuries.

The company came to the decision on the basis of independent cases reported for certain vehicles. The recall will be effective immediately and owners of affected vehicles will be contacted shortly. The vehicles will undergo inspection, based on which the necessary parts will be replaced. Till then, owners have been advised to refrain from driving.

In January this year, the auto giant recalled more than 1200 Mercedes S-Class Sedans and one EQS over an improper eCall function, which may not allow customers to be able to get in touch with emergency services when most in need, especially in the event of accidents.

Zacks Rank and Key Picks

DDAIF currently carries a Zacks Rank #3 (Hold).

Better-ranked players in the auto space include Wabash National Corporation (WNC - Free Report) , carrying a Zacks Rank #1 (Strong Buy) and Fox Factory Holdings (FOXF - Free Report) and Standard Motor Products (SMP - Free Report) , each carrying a Zacks Rank #2 (Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Wabash National has an expected earnings growth rate of 239.3% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days.

Wabash National’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. WNC pulled off a trailing four-quarter earnings surprise of 51.26%, on average. The stock has declined 3.6% over the past year.

Fox Factory has an expected earnings growth rate of 14.9% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 1% upward in the past 30 days.

Fox Factory’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. FOXF pulled off a trailing four-quarter earnings surprise of 10.18%, on average. The stock has declined 40.8% over the past year.

Standard Motor has an expected earnings growth rate of 2% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days.

Standard Motor’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. SMP pulled off a trailing four-quarter earnings surprise of 40.34%, on average. The stock has declined 13.3% over the past year.