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Stellantis Recalls 250K Vehicles in the US Due to an Airbag Defect

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Key Takeaways

  • STLA recalls 250,651 U.S. vehicles due to defective side curtain airbags that may not hold pressure.
  • Q1 2025 revenues fell 14% to EUR 35.8B, driven by shipment declines and weak pricing and product mix.
  • Despite North American slowdowns, STLA's European market share hit 17.3% after seven new launches.

Stellantis N.V. (STLA - Free Report) is recalling 250,651 vehicles in the United States because of a defect in the side curtain airbags that may not be properly sealed, per the U.S. National Highway Traffic Safety Administration (NHTSA). The recall covers specific 2022–2025 Pacifica and Voyager models.

Per NHTSA, if the air bag cannot maintain sufficient pressure, it could raise the risk of passenger ejection and injury in a crash. Dealers will inspect and, if needed, replace the side curtain airbags at no cost to owners.

Stellantis has not received any reports of injuries or crashes linked to the issue and advised customers to follow the recall notice instructions.

In the first quarter of 2025, Stellantis reported net revenues of €35.8 billion, down 14% from the first quarter of 2024. This drop was mainly driven by reduced shipment volumes, along with an unfavorable product mix and pricing environment. Consolidated shipments fell 9% to 1.22 million units, largely due to lower production in North America caused by extended holiday shutdowns in January, ongoing product transitions and weaker demand for light commercial vehicles in Enlarged Europe.

However, in Europe, the company began to regain market share thanks to seven major new product launches. Its first-quarter 2025 market share rose to 17.3%, up 190 basis points from the fourth quarter of 2024, reaching its highest level since the first quarter of 2024.

The changes in the tariff policy landscape compared to when Stellantis originally set its 2025 outlook have led the company to take the cautious step of temporarily suspending its financial guidance.

STLA’s Zacks Rank & Key Picks

Stellantis carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the auto space are Strattec Security Corporation (STRT - Free Report) , Allison Transmission Holdings, Inc. (ALSN - Free Report) and Ferrari N.V. (RACE - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for STRT’s fiscal 2025 sales and earnings implies year-over-year growth of 3.49% and 8.11%, respectively. EPS estimates for fiscal 2025 and 2026 have improved 73 cents and 91 cents, respectively, in the past 60 days.

The Zacks Consensus Estimate for ALSN’s 2025 earnings implies year-over-year growth of 6.26%. EPS estimates for 2025 and 2026 have improved 54 cents and 53 cents, respectively, in the past 60 days.

The Zacks Consensus Estimate for RACE’s 2025 sales and earnings implies year-over-year growth of 13.56% and 7.97%, respectively. EPS estimates for 2025 and 2026 have improved 29 cents and 33 cents, respectively, in the past seven days. 

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