Stellantis (STLA) Recalls More Than 354K Jeep Grand Cherokees
Stellantis STLA is recalling more than 354,000 Jeep Grand Cherokee’s worldwide. The recall will address the defect in the rear coil spring that can fall off while the vehicle is moving. The models that are called back include the 2022-2023 Grand Cherokee and the 2021-2023 Grand Cherokee L SUVs.
According to a document published by the U.S. National Highway Traffic Safety Administration (NHTSA), the company says that the springs may not have been installed properly during production. There is a possibility that springs can detach from the moving vehicle, increasing the chances of a crash and creating a hazard for other drivers.
The automaker says that it is aware of 17 warranty claims, two customer assistance reports and two field reports that may have been caused by the problem. So far, there has been no report of a crash or injuries due to the defect as of May 25, 2023. Among the recalled vehicles, most are in North America.
Air-suspension SUVs are not part of the recall. The vehicle owners will be notified by letter starting Jul 28, 2023. Dealers will perform an inspection on the spring and replace assemblies if required.
Moreover, the automaker is also recalling 80,629 trucks and SUVs due to the risk of engine stalls. Per the NHTSA notice, the models covered in the recall include the 2014-2019 Ram 1500 and the 2014-2020 Jeep Grand Cherokee with 3.0L diesel engines.
The notice states that the crankshaft position sensor tone wheel may delaminate, because of which the engine may lose its ability to synchronize the fuel injector pulses and cam shaft timing, potentially causing an engine stall.
Dealers will update the powertrain control module software to maintain vehicle propulsion and the update will be free of charge, said the regulator.
Zacks Rank & Key Picks
STLA currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Some other top-ranked players in the auto space are Ford Motor Company F, General Motors Company GM and Wabash National WNC, each carrying the same rank as STLA.
Ford is one of the leading automakers in the world. The Zacks Consensus Estimate for F’s 2023 sales implies year-over-year growth of 7.5%.
General Motors is one of the world’s largest automakers. The Zacks Consensus Estimate for GM’s 2023 sales indicates year-over-year growth of 4.5%.
Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings indicates year-over-year growth of 12% and 90.7%, respectively.
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