Fiat Chrysler Automobiles N.V. FCAU is recalling over 208,000 minivans in North America, per Associated Press. Risks of engine getting stalled or lose power steering may have prompted the automaker to make such a move.
The vehicles to be recalled cover certain Chrysler Pacifica minivans from the model year 2017 through 2019. Per the company’s sources, there is a chance of contamination of the wiring harness, which may cause the vehicle to crash. But no cases of injury or crash have been reported yet. The recall will start on Jun 28 and the dealers will clean the wiring contacts.
Notably, in March, Fiat Chrysler made the announcement to recall approximately 965,000 gasoline vehicles that don’t comply with the U.S. emission standards. The flawed vehicles are from the United States and Canada that will require catalytic converter replacements. In-use emissions investigation conducted by Environmental Protection Agency (“EPA”) and in-use testing led by Fiat Chrysler, per the U.S. regulations, impelled the company to issue the recall.
Over the past six months, shares of Fiat Chrysler have underperformed the industry it belongs to. During the said period, shares of the company have lost 8.4% compared with its industry’s decline of 4.4%.
Fiat Chrysler currently carries a Zacks Rank #4 (Sell).
A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN, Fox Factory Holding Corp. FOXF and PACCAR Inc. PCAR, each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Allison Transmission has an expected long-term growth rate of 10%. Over the past two years, shares of the company have gained 16.5%.
Fox Factory has an expected long-term growth rate of 16.4%. Over the past three months, shares of the company have gained 11.8%.
PACCAR has an expected long-term growth rate of 8.4%. Share price of the company has increased 15.5% in the past six months.
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