Volkswagen to Recall More Than 60K Vehicles to Fix Display Defect

Volkswagen VWAGY is recalling 60,490 vehicles in the United States due to a defect that prevents the display of the gear position, potentially causing the car to roll away if the parking brake is not engaged. This increases the risk of accidents, per the U.S. National Highway Traffic Safety Administration (NHTSA). The impacted models include specific 2021-2023 Volkswagen ID.4 units and 2022-2023 Audi Q4 e-Tron and Q4 e-Tron Sportback vehicles. The issue, traced back to a software glitch, was first identified in August after five cases were reported outside the United States. The NHTSA emphasized the importance of promptly addressing safety defects. Volkswagen is actively informing affected owners and working on a solution. This recall follows another one issued by Volkswagen last month, which affected about 30,000 cars due to faulty rearview cameras. That recall primarily impacted Audi Q3 models, along with some Volkswagen Tiguan and Arteon vehicles.Volkswagen reported a decline in vehicle deliveries in 2024 due to weaker demand in China. The company delivered 9.03 million vehicles worldwide last year, representing a 2.3% drop from the previous year. While deliveries increased in North and South America, they were offset by a 10.3% decline in the Asia-Pacific region. Deliveries in China, the automaker’s largest market, fell 9.5% year over year. Despite this, sales of battery-electric vehicles in China rose 8%.In Europe, deliveries remained relatively stable, slipping just 0.1%. However, Volkswagen maintained its lead in all-electric vehicle sales in the region, with battery-electric order intake in Western Europe surging 88% year over year, driven by new models like the VW ID.7 Tourer, Audi Q6 e-tron, and Porsche Macan Electric. Per Oliver Blume, Volkswagen Group CEO, the past year was challenging because of weaker demand in key markets and increasing competition from Chinese automakers offering budget-friendly alternatives amid economic uncertainty.Amid intense price competition in China, strategic adjustments and ongoing portfolio optimization by VWAGY are starting to yield results. During the final quarter, the company nearly matched the previous year's sales volume in China. In December, Volkswagen reached an agreement with labor unions to cut 35,000 jobs at its German facilities by 2030. The company aims to save approximately $4.1 billion annually through these reductions while avoiding plant closures in Germany, which had previously been considered.VWAGY’s Zacks Rank & Key PicksVolkswagen carries a Zacks Rank #3 (Hold) at present.Some better-ranked stocks in the auto space are Geely Automobile Holdings Limited GELYY, Dana Incorporated DAN and Strattec Security Corporation STRT, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for GELYY’s fiscal 2025 sales and earnings indicates year-over-year growth of 66.62% and 149.31%, respectively. EPS estimates for fiscal 2025 and 2026 have improved 15 cents and 38 cents, respectively, in the past 60 days. The Zacks Consensus Estimate for DAN’s 2025 earnings implies year-over-year growth of 70.21%. EPS estimates for 2025 and 2026 have improved 10 cents each in the past 30 days.The Zacks Consensus Estimate for STRT’s 2025 sales indicates year-over-year growth of 2.61%. EPS estimates for 2025 and 2026 have improved 91 cents and $1.06, respectively, in the past 30 days.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dana Incorporated (DAN): Free Stock Analysis Report Strattec Security Corporation (STRT): Free Stock Analysis Report Geely Automobile Holdings Ltd. (GELYY): Free Stock Analysis Report Volkswagen AG Unsponsored ADR (VWAGY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks