Daimler to Recall More Than 1 Million Vehicles Over Air Bag Snag

Per Reuters, Daimler AG (OTCMKTS:DDAIF) reported to globally recall more than 1 million Mercedes-Benz cars and sport utility vehicles due to possible air bag deployment issue.

The safety recall include 495,000 vehicles of the United States, 400,000 from Britain, 76,000 of Canada and a few hundred thousand from Germany. Daimler doesn’t have the exact count of total vehicles to be recalled.

The recalled vehicles include A, B, C models from the 2012-2018 period besides E-Class versions and CLA, GLA, GLC vehicles.

Daimler Stock Price and Consensus

Air bags in the driver side front might accidentally deploy due to electrostatic discharge coupled with a broken clock spring and inadequate grounding of steering components. In order to fix the issue, dealers will add new grounding to the steering components.

Per Mercedes-Benz management in the United States, a few accidents with drivers having suffered minor bruises occurred due to this air bag deployment problem.

Earlier in July, DDAIF recalled more than 3 million Mercedes-Benz diesel vehicles in Europe due to emissions concerns.

Price Performance

Shares of Daimler stock have gained 8.8% year to date, outperforming the industry’s 6.6% rally.

Zacks Rank & Other Key Picks

Daimler stock sports a Zacks Rank #1 (Strong Buy). Some other top-ranked auto stocks are Adient PLC (NYSE:ADNT), Cummins Inc. (NYSE:CMI) and Continental AG (OTCMKTS:CTTAY) holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here

Adient has an expected long-term earnings growth rate of 10.6%.

Cummins has an expected long-term earnings growth rate of 12%.

Continental has an expected long-term earnings growth rate of 7.1%.

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Article printed from InvestorPlace Media, https://investorplace.com/2017/10/daimler-ddaif-recall-1-million-vehicles-air-bag-snag-ggsyn/.

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