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STLA, TM and VWAGY in the Spotlight on a String of Recalls

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There has been a spurt in automobile purchases in recent times. However, this is not without the issue of automotive recall campaigns. System-based failures, rather than manufacturing-based failures, have accounted for the majority of recalls. Most of the time, the failures that lead to an auto recall impact a wide range of classes and models of vehicles. The mounting complexity in automobile software increases the chances of malfunctioning and automotive parts designed for multi-model usage make failures more impactful.

Automotive recalls are costly and harm a brand’s reputation by garnering negative media attention, if handled poorly. Yesterday, three auto giants, Stellantis (STLA - Free Report) , Volkswagen AG (VWAGY - Free Report) , and Toyota Motor (TM - Free Report) issued separate recalls to fix multiple defects.

While Stellantis sports a Zacks Rank #1 (Strong Buy), Toyota and Volkswagen carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

STLA Recalls Heavy-Duty Vehicles to Replace Faulty Fuel Pumps

Stellantis is recalling more than 246,000 Ram Heavy Duty and Chassis Cab trucks, mainly in North America, to replace the fuel pumps that can lead to stalling or failure of engine due to wear. The initiative covers 2019 and 2020 truck models that are equipped with 6.7-liter Cummins diesel engines.

According to reports, customer complaints about fuel pump failures and the hefty repair bills prompted an investigation by the National Highway Traffic Safety Administration. Stellantis, has, however, claimed that the recall decision was made before the announcement of the enquiry. Owners can get the pumps repaired from dealers at zero cost, and will be notified by the next month.

VWAGY Recalls Audis Over Airbag Issues

The recall by Volkswagen covers more than 240,000 Audi vehicles in the United States and Canada. The affected ones include certain Audi A4, RS5, A5, S4 and S5 models built between 2017 and 2020.

Volkswagen has notified that an electric cable defect could disable the passenger airbag. The possibility of faulty cable used in the passenger occupant detection system may put the vehicle’s software at risk of misdiagnosing a problem and disabling the passenger airbag, thereby increasing the chances of injury in a crash.

As a fix to the problem, dealers will replace the cable and the heating map or the entire seat cover. Letters notifying the same to owners will be sent out starting Jan 7, 2022. The current recall is an expansion for the same problem in 2019. Vehicles repaired then will have to be fixed again.

TM Recalls Sedans Over Brake-Assist System Problems

Toyota is recalling more than 227,400 Camry sedans that stand the risk of suddenly losing the power assist in the brake system. The recall initiative covers certain 2018 and 2019 midsize sedans models, especially in North America.

Toyota has stated that there can be premature wear in some brake system components. The failure of power assistance will not hamper the operation of the brakes. However, it will make the driver more prone to crash. Owners of recalled cars will be notified by mid-January 2022. The dealers will inspect a vacuum pump and repair or replace it in affected vehicles.

Last Words

Auto companies are bearing the brunt of negative portrayal with recalls frequently making headlines. The recalls by automotive giants are a glaring testimony to the problems that modernization can impose. The auto manufacturers need to introspect deeply in order to eliminate the risks of driving.

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