) is recalling 2.64 million vehicles across the globe to fix
certain drive system and electronic problems. The company
revealed that the use of synthetic oil in the seven-speed
dual-clutch DQ200 gearbox of certain cars and vans can result in
electric malfunctions in hot weather conditions. Volkswagen will
be replacing the synthetic oil with mineral oil in the gearboxes
of 1.6 million cars and vans. Customers will not have to incur
any charges for this replacement.
DAIMLER AG (DDAIF): Get Free Report
VOLKSWAGEN-ADR (VLKAY): Get Free Report
To read this article on Zacks.com click here.
Out of these 1.6 million vehicles, Volkswagen is recalling
640,309 cars and minivans in China. This is for the second time
the German automaker is recalling vehicles from China.
Vehicles that will be recalled in China include Volkswagen
Scirocco 1.4Ts, Golf wagons, Golf sport convertibles, Beetle
1.4Ts and 1.2Ts, and Audi A1s and A3s, which were imported from
Jan 28, 2009 to Jul 4, 2013.
The recall also includes vehicles produced by Volkswagen's joint
venture in China with state-owned First Auto Works. These
vehicles are Boras, Golfs, Sagitars and Magotan sedans and Touran
Volkswagen is also recalling 800,000 Tiguan vehicles globally to
replace a fuse that can cause failure of the vehicle's light. The
recall is meant for vehicles produced from 2008 to mid 2011. The
automaker also assured that it will only take a few minutes to
fix the problem. Moreover, the automaker is recalling 239,000
Amarok pickups to repair a fuel leak problem.
This is not the first time that Volkswagen is recalling vehicles
from China this year. In March, the company had recalled 384,181
vehicles to fix problems in the gearbox.
China offers a large market for Volkswagen with huge sales
opportunity. Good performance of the company in this region helps
it to overcome the sluggish sales in other parts.
Toyota Motor Corp.
) recalled 33,000 cars, pickup trucks and commercial vehicles
globally to fix a problem related to the engine. The vehicles
being recalled include Land Cruiser Prado mid-size SUV and
several larger vehicles. While most of the recalls were made in
Japan, the automaker also recalled 4,000 four-cylinder Tacoma
pickup trucks of 2013 and 2014 base model in the U.S.
Currently Volkswagen carries a Zacks Rank #5 (Strong Sell). Other
stocks in the automobile sector worth considering include
Fuji Heavy Industries Ltd.
). Daimler is a Zacks Rank #1 (Strong Buy) stock, while Fuji
carries a Zacks Rank #2 (Buy).