Fiat Chrysler Automobiles N.V.’s (FCAU - Free Report) U.S. arm FCA US LLC reported that it is recalling roughly 710,000 sport utility vehicles (SUVs) from the U.S. market. The SUVs have been recalled to investigate the brake-booster shields for proper installation.
The company is aware of one brake shield related accident with no injury.
Notably, brake defending shields are designed to protect corrosion of boosters from water exposure. However, if the booster gets damaged by water, it might lead to excessive brake-pedal stiffness.
Fiat Chrysler Automobiles N.V. Price and Consensus
In the 2014 recall, these shields were installed in 95% vehicles. A review of warranty data discovered that in some, the shields were not correctly installed.
Customers affected with this defect will be notified in early November. Also, these wrongly installed shields will be inspected and changed if required, without having to cough up an extra cost.
Shares of Fiat Chrysler have surged 96.2% year to date, significantly outperforming the industry’s 5.1% gain.
Zacks Rank & Key Picks
Fiat Chrysler currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto space are Toyota Motor Corporation (TM - Free Report) , Volkswagen AG (VLKAY - Free Report) and Daimler AG (DDAIF - Free Report) . Toyota sports a Zacks Rank #1 (Strong Buy), while Volkswagen and Daimler carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Toyota has an expected long-term earnings growth rate of 7%.
Volkswagen has an expected long-term earnings growth rate of 8.9%.
Daimler has an expected long-term earnings growth rate of 2.8%
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