Stellantis Issues Major Recall for 1.46 Million Vehicles
Stellantis Announces Recall of 1.46 Million Vehicles
Stellantis N.V. (NYSE: STLA) is stirring attention in the automotive world as it announces a significant recall of 1.46 million vehicles globally. This recall comes as the automaker aims to address a critical software issue affecting the stability control systems in several of its models.
Details of the Recall
Among the vehicles affected, approximately 1.23 million are Ram 1500 trucks manufactured between 2019 and 2024 in the United States. The safety-related defect is associated with a software malfunction that could potentially disable the electronic stability control (ESC) system through the anti-lock brake system control module.
Geographical Impact
The recall extends beyond the U.S., affecting around 159,000 vehicles in Canada, 13,000 in Mexico, and an additional 61,000 vehicles in various other markets. This broad impact suggests widespread concern regarding the safety protocols surrounding these vehicles.
Safety Compliance Issues
The National Highway Traffic Safety Administration (NHTSA) has outlined that the vehicles do not meet the Federal Motor Vehicle Safety Standard number 126 concerning Electronic Stability Control Systems. Stellantis has communicated that, in the event of a malfunction, warning lights indicating ABS, ESC, Adaptive Cruise Control, and Forward Collision Warning may illuminate upon starting the vehicle. However, drivers can still rely on fundamental braking functionality even when these systems are compromised.
Additional Recalls and Production Halts
In parallel with the truck recall, Stellantis is recalling about 33,000 Jeep Gladiator models produced from 2020 to 2024, and Jeep Wrangler vehicles from 2018 to 2024. These recalls are prompted by concerns related to internal short circuits within the instrument panel cluster, presenting an additional layer of concern for Jeep owners.
Production Adjustments at Jeep
Recent reports indicate that Jeep has also temporarily suspended production of its Wrangler and Grand Cherokee models due to high inventory levels. Stellantis confirmed that adjustments in production were made at its facilities, although the timeline for this production halt remains uncertain.
Current Market Response
Following the announcement of the recall, shares of Stellantis, denoted by the ticker STLA, saw a modest increase of 0.35%, reaching $15.56. This response illustrates the market's mixed sentiment concerning the company's current operational challenges while balancing shareholder confidence.
Frequently Asked Questions
What is the reason behind Stellantis' vehicle recall?
The recall is due to a software flaw that can disable the electronic stability control system, affecting several vehicle models.
How many vehicles are affected by the recall?
A total of 1.46 million vehicles, including Ram 1500 trucks and Jeep models, are part of the global recall.
What steps is Stellantis taking to address the software issue?
Stellantis is working to notify affected vehicle owners and implement solutions to rectify the software problems, ensuring safety compliance.
Are there any injuries associated with this recall?
Stellantis has stated that it is unaware of any related injuries or crashes due to the software malfunction.
How is the stock market reacting to the recall news?
Following the announcement, Stellantis shares have seen a slight increase, indicating that the market's reaction is mixed in light of operational challenges.
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