Fiat Chrysler Automobiles N.V. FCAU) has announced that it is recalling around 1.8 million Ram trucks, primarily in North America, to fix a gearbox defect, per a Wall Street Journal report. The defect may cause trucks to accidentally shift from parking mode and start moving.
According to company sources, the brake-transmission shift interlock system may stop working because of prolonged exposure to high temperature conditions, as a result of which the vehicles might start moving even without a foot on the brake pedal or a key in the ignition.
The trucks recalled include certain 2009-2017 model year Ram light-duty pickups, heavy-duty pickups and chassis cabs. The auto giant assured that it would repair the faulty vehicles and suggested that drivers should use parking brake as a safety measure.
In recent times, Fiat Chrysler has been embroiled in several recalls. In November, the company reported that it would recall approximately 8,000 Jeep sport utility vehicles (SUVs) in order to fix faulty airbags. The defect might pose danger to the front-seat passengers (read more: Fiat Chrysler Announces Recall of 8000 Jeep SUVs).
Over the past six months, shares of Fiat Chrysler have outperformed the industry it belongs to. The company’s shares have increased 71.9% compared with the industry’s rally of 23.8%.
Fiat Chrysler carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other top-ranked automobile stocks in the same space are Allison Transmission Holdings, Inc. ALSN, American Axle & Manufacturing Holdings, Inc. AXL and Oshkosh Corporation OSK, each sporting a Zacks Rank #1.
Allison Transmission has a long-term growth rate of 10%. The company’s shares have gained 28.1% year to date.
American Axle & Manufacturing has a long-term growth rate of 8.1%. The company’s shares have gained 17.6% over the past six months.
Oshkosh Corporation has a long-term growth rate of 16.5%. Its shares have rallied 41.5% on a year-to-date basis.
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