Mercedes recalls 1.3 million cars

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German luxury carmaker Mercedes has recalled 1.3m vehicles as part of what it says is a bid to improve quality.


Analysts said the move is likely to cost many millions of euros, and the firm already has warned that efforts to improve its product would hit profits.

The company will look to fix problems with batteries, alternators and brakes on a number of models made since 2001.

A slump in profitability at Mercedes has been acting as a drag on earnings at US-German parent DaimlerChrysler.

Easy fixes?

Mercedes will check and fix problems with batteries and alternators on six- and eight-cylinder petrol engines built between June 2001 and November 2004.

On E-class and CLS-class models built between January 2002 and January 2005, computer software will be installed to control the battery.

Mercedes also will update the braking system on E, SL and CLS-class vehicles made since June 2001.

The company has had a bumpy ride in recent quarters.

Mercedes's profit slid to 20m euros (£14m; $26m) in the last three months of 2004 as it faces strong competition from rivals such as BMW. A drop in the value of the US dollar also cut its earnings, as did the cost of launching new models and losses from its Mercedes Smart mini-car range.

It hopes to revive its fortunes by 2006.

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This just in.........BMW sales go through the roof in May 2005. Approx 1.3 million new BMW's were sold between April1 and may 30th 2005. Mercedes accuses BMW of stealing customers.

This is just a joke...........but wouldn't it be funny?
 


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