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Fiat Chrysler (FCAU) Announces Recall of 470,000 Vehicles

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Fiat Chrysler Automobiles N.V. (FCAU - Free Report) has announced that it will recall 470,000 vehicles worldwide, per a Wall Street Journal report. The recall of sedans and SUVs will be done to correct fault-prone component that might hold back deployment of active head restraints in case of a crash. In fact, in recent times, the automaker has been plagued with a quite a few recall issues.

The auto giant said that it is not aware of any accidents or injuries pertaining to the recall. The company came to know about the problem from the National Highway Traffic Safety Administration (NHTSA) investigation initiated in June 2017. According to the company, of the total vehicles recalled, 414,134 were sold in the United States. The recall includes 2012 Jeep Liberty SUVs and 2012-13 Chrysler 200 and Dodge Avenger mid-size cars.

Notably, early this month, Fiat Chrysler’s U.S. arm, FCA US LLC, reported recall of around 710,000 SUVs from the United States market. The recall was made to examine the brake-booster shields for proper installation (read more: Fiat to Recall 710,000 SUVs to Inspect Brake Shields).
In the last six months, Fiat Chrysler’s shares have outperformed the industry it belongs to. The company’s shares have increased 81.5% compared with the industry’s growth of 15.9%.

Currently, Fiat Chrysler has a Zacks Rank #3 (Hold).

A few better-ranked stocks in the auto space are Toyota Motor Corporation (TM - Free Report) , Cummins Inc. (CMI - Free Report) and Daimler AG (DDAIF - Free Report) . Toyota sports a Zacks Rank #1 (Strong Buy), while Cummins and Daimler hold 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%.

Cummins has an expected long-term earnings growth rate of 12%.

Daimler has an expected long-term earnings growth rate of 2.8%.

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