February 22, 2015
The National Highway Transportation Safety Administration
(NHTSA) handled 26 recall, investigation, or complaint notices affecting
2014 model year vehicles sold in the U.S. by Mercedes Benz. That’s 1 more than the 25 the NHTSA received
for Chevrolet vehicles.
In the latest recall of Mercedes Benz vehicles, the company
is recalling 147,224 of various models from the 2013 through 2015 model years
to fix a rubber seal in the back of the engine bay that could stick to the hood
of the car when the hood is opened, and then fall into the engine bay when the
hood is closed. If a piece of the seal
comes into contact with the car’s exhaust system the risk of fire is increased.
Mercedes-Benz will start the recall next month. Car owners can then take their vehicles to
dealers, who will fix the issue for free by attaching four additional retaining
clips to the seal.
Now the difference is substantial between the Mercedes Benz
recall and the recall of millions of General Motors Co. (NYSE: GM) vehicles for
a defective ignition switch that may be responsible for dozens of deaths. Still, the number of complaints about the
Mercedes Benz defect is non-trivial for luxury cars.
The Mercedes recall is also not likely to have much impact
on the sale of the company’s cars or on its stock price. First of all, the numbers are relatively small
due to the vast difference between the number of cars GM/Chevrolet builds and
the number that Mercedes builds. Second,
and more important, is that Mercedes has built a reputation over many decades
as a premium vehicle that is well-engineered, well-built, and worth the premium
price. A relatively minor issue does not
wash away that reputation.
Another more serious recall notice was also posted by the
NHTSA late last week. Jaguar Land Rover
North America LLC, which is owned by India’s Tata Motors, has recalled 16,793 Range
Rover and Range Rover Sport 2012 to 2015 models to fix a defect in the software
that detects the weight of an occupant of the front passenger seat. A lightweight adult in the seat may not be
detected, disabling the passenger-side airbag.
The Land Rover recall is unrelated to last month’s massive
recall of more than 20 million vehicles from 10 carmakers due to faulty airbags
manufactured by Takata Corp.
Land Rover is another premium brand with a solid reputation
for reliability that probably won’t feel a significant effect from this recall
notice. But nearly simultaneous recall notices by Mercedes Benz and Land Rover
do underscore the fact that even luxury vehicles are not immune from defects.
Source: Wall Street