Volkswagen AG VLKAY is recalling around 800,000 VW and Porsche vehicles globally, according to sources. These vehicles are being recalled due to a defect in the foot pedals which can make them loose.
The vehicles covered under this recall mainly include 409,477 Cayenne SUVs and 391,000 Touareg vehicles of model years 2011 through 2016. Volkswagen found that these vehicles may have a loose clip on the bearing bracket of the pedals. The automaker detected the issue during internal assessment. There have been no reports of any casualties related to this problem.
Cayenne used to be the bestselling Porsche vehicle in the U.S. However, the smaller SUV, the Macan captured the top position last year. In 2015, Porsche sold 86,016 Macan and 79,700 Cayenne vehicles.
These vehicles’ sister model Q7 is not covered under this recall. These vehicles share technology and some parts too. All these vehicles are produced at Volkswagen’s factory in Bratislava, Slovakia.
Volkswagen found itself in troubled waters after the Environmental Protection Agency (“EPA”) revealed that it had developed a software algorithm to deceive U.S. emission tests. Volkswagen admitted to its diesel vehicles being installed with software that makes the engines appear to have low emission levels during tests. According to the EPA, Volkswagen vehicles emit nitrogen oxides, or NOx, at almost 40 times the standard amount. Nitrogen oxide emissions lead to smog and acid rain, and can cause serious health concerns like lung cancer.
Volkswagen currently carries a Zacks Rank #4 (Sell).
Stocks that Warrant a Look
Some better-ranked automobile stocks include Wabash National Corp. WNC, Federal-Mogul Holdings Corporation FDML and Superior Industries International, Inc. SUP. All the three stocks sport a Zacks Rank #1 (Strong Buy).
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