Shares in auto giant Stellantis (STLA) reversed nearly 3% today after another safety recall affecting thousands of its vehicles.
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Engine Failure
The company, whose brands include Chrysler, Dodge, and Fiat, will recall 112,859 vehicles in the United States due to a potential engine failure or engine compartment fire.
The National Highway Traffic Safety Administration cited debris inside the engine as a cause without providing additional details.
The recall affects certain Jeep Grand Cherokee 4xe models between 2023-2025 and Jeep Wrangler 4xe Plug-In Hybrid Electric Vehicle models between 2024-2025, according to the NHTSA.
A loss of propulsion power increases the risk of a crash, while a vehicle fire can raise the risk of injury, the NHTSA added, noting that no solution has yet been identified for the affected vehicles.
It is the latest in a long line of vehicle recalls by the group.
Recall Woes
Earlier this month, Stellantis announced the recall of 375,000 Jeep SUVs due to fire risks, advising owners to park them outside. In October, the automaker also recalled more than 298,000 vehicles in the United States for a potential risk of unintended vehicle movement.
Back in September, the NHTSA said Stellantis was recalling nearly 164,000 Jeep vehicles in the United States due to potential door trim detachment problems.
The safety issues, added the NHTSA, involved trim on both the driver and passenger doors that could come off the vehicles and create a potential road hazard.
At a difficult time for the auto industry given tariff uncertainty, rising supply chain costs and faltering consumer confidence, this spate of recalls is an unwelcome hit to brand reputation.
It is why it has been identified as a key risk by the business. Investors need to be wary of such risks before looking to buy stocks.
Is STLA a Good Stock to Buy Now?
On TipRanks, STLA has a Moderate Buy consensus based on 5 Buy, 9 Hold and 1 Sell ratings. Its highest price target is $14.54. STLA stock’s consensus price target is $10.83, implying a 1.98% upside.
