Recalls Plague Automakers: General Motors, Ford in Focus

It seems the problem of recalls is far from over for global automakers. In the last few days, auto giants such as General Motors Company GM , Ford Motor Company F and Volkswagen AG VLKAY once again faced recalls.

Reportedly, General Motors will be recalling more than 2.5 million vehicles in China. The issue stemmed from concerns over faulty airbags manufactured by Takata. This is indeed a serious blow to the U.S. automaker and it will start withdrawing faulty vehicles from next month. Ford too has reportedly come closer to recalling SUV models in the United States. Reports of leakage in exhaust fumes are responsible for this development.

Last week, German automaker Volkswagen announced that it along with its Chinese joint-venture partners will recall 4.86 million vehicles in China. Once again, the reason was faulty air bags supplied by Takata.

The instances of recalls in China, the largest car market in the world, can prove be damaging for these automakers. At a time when these automakers are investing huge money on electric vehicles, these recalls are doing no good to them.

Currently, Volkswagen has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here .

Both General Motors and Ford carry a Zacks Rank #3 (Hold). A better-ranked automobile stock is Toyota Motor Corporation TM , sporting a Zacks Rank #1.

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Volkswagen AG (VLKAY): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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