Per Reuters, Fiat Chrysler Automobiles N.V. FCAU announced the recall of more than 5.3 million vehicles sold in North America to fix a defective cruise control. In unusual situations, the defect might prevent drivers from deactivating the vehicle’s cruise control. The device usually helps drivers to retain a constant speed without intervention.
Further, the company has warned owners not to use the faulty function before the software gets updated in their vehicles.
Out of the total recalled vehicles, more than 4.8 million are from the United States while 490,000 are from Canada. The recall includes gasoline-based combustion engine vehicles with model years ranging from 2014 through 2019. The vehicles include Chrysler 200, Chrysler 300, Chrysler Pacifica, Dodge Charger, Dodge Challenger, Dodge Journey, Jeep Grand Cherokee, Jeep Wrangler, and Ram 1500, 2500 and 3500 pickup trucks, Dodge Durango, Jeep Cherokee, and Ram 3500/4500/5500 cab chassis trucks. Owners of the affected vehicles will be informed this week and the repairs will be done free of cost.
Fiat Chrysler Automobiles N.V. Price and Consensus
The company reported additional recall of an unspecified number of vehicles in Mexico and other markets, and few Fiat Fremont vehicles, built on the same platform as Dodge Journey.
Earlier in 2015, Fiat Chrysler had to pay $175 million as penalties to the U.S. regulators. This was due to safety lapses, which led to the mishandling recalls of nearly 11 million vehicles. After this, the company assured to improve its safety procedures. The company has not announced the cost related to the recent recall yet.
Prior to this, in December 2017, Fiat Chrysler recalled roughly 1.8 million Ram trucks to fix a gear-box defect.
Price Performance
In the past six months, Fiat Chrysler’s stock has moved up 28%, outperforming 2.1% decline of the industry it belongs to.
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Zacks Rank & Stocks to Consider
Fiat Chrysler currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Magna International Inc. MGA, Ferrari N.V. RACE and Oshkosh Corporation OSK. Magna and Ferrari carry a Zacks Rank #2 (Buy) while Oshkosh sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Magna has an expected long-term growth rate of 8.5%. Shares of the company have risen 43.1% over the past year.
Ferrari has an expected long-term growth rate of 17.3%. Shares of the company have risen 53.4% over the past year.
Oshkosh has an expected long-term growth rate of 18.3%. In a year’s time, shares of the company have gained 17.5%.
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