Back to top

Image: Bigstock

Fiat Chrysler (FCAU) Announces Recall of 8000 Jeep SUVs

Read MoreHide Full Article

Per Wall Street Journal, Fiat Chrysler Automobiles N.V. reported that it will 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.

The vehicles to be recalled include the 2018 model of Jeep Compass sport-utility vehicles manufactured from early September till Nov 19 for the North American market. Hence this affects 7,000 vehicles already sold in the United States. Recall notices will be sent out to the dealers by next month.

Having made its debut in 2017 model year in the United States, the second-generation Jeep Compass was manufactured in Toluca, Mexico.

Fiat Chrysler Automobiles N.V. Price and Consensus

One of the company’s suppliers has been notified about the flawed airbags that might carry loose fasteners. However, Fiat Chrysler is not aware of any accidents or injuries caused due to this snag in the installed vehicular parts.

Only last month, Fiat Chrysler had announced the recall of 470,000 sedans and SUVs to repair fault-prone component that might hold back deployment of active head restraints in case of a car crash (Read more: Fiat Chrysler Announces Recall of 470,000 Vehicles).

In September, the company issued a recall to fix defective seat belts in roughly 50,000 Chrysler Pacifica vehicles from the 2017 and 2018 model years. The recall includes 47,927 minivans sold in the United States and 1,908, in Canada.

Price Performance

In the last six months, shares of the company have outperformed the industry it belongs to. The stock has surged 66.8% compared with the industry’s 18% gain during the period.



Zacks Rank & Other Key Picks

Fiat Chrysler carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the auto space include Cummins Inc. (CMI - Free Report) , BMW AG (BAMXF - Free Report) and BorgWarner Inc. (BWA - Free Report) . While Cummins sports a Zacks Rank #1 (Strong Buy), BMW and BorgWarner carry a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cummins has an expected long-term growth rate of 12.2%. The stock has seen the Zacks Consensus Estimate for the current-quarter earnings per share being revised 2.4% upward over the last 30 days.

BMW has an expected long-term growth rate of 4.2%. Over a year, shares of the company have been up 18.8%.

BorgWarner has an expected long-term growth rate of 9.1%. Its shares have been up 29.1% in the last six months.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


BorgWarner Inc. (BWA) - free report >>

Cummins Inc. (CMI) - free report >>

Bayerische Motoren Werke AG (BAMXF) - free report >>

Published in