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Fiat Chrysler Announces Two Recalls Over Safety Issues

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Fiat Chrysler Automobiles N.V. is recalling approximately 209,000 units of sports utility vehicle (SUV) and minivan, globally, per AP. The recall is to fix a braking problem in the vehicles, which can make the vehicles take longer distances for stopping.

The recalled models include — 2018 Dodge Journey, 2019 Jeep Cherokee, and the 2018 and 2019 Dodge Grand Caravan, and Jeep Compass, which are majorly from the United States. Brakes in the recalled vehicles are not built per specifications, which lead to the formation of gas bubbles in the brake fluid.

Further, the company’s Mexican unit has issued another recall of more than 122,000 vehicles, per Reuters. The recalled vehicle brands are — Chrysler, Dodge, Jeep and Ram. The recall is to correct a computer programming problem for the vehicle’s powertrain control module.

Fiat Chrysler Automobiles N.V. Price and Consensus

 

Earlier, in May, Fiat Chrysler recalled more than 5.3 million vehicles in North America due to a software flaw that could stop drivers from deactivating vehicles’ cruise control — an electronic device that lets the vehicle to sustain a constant speed, without driver intervention.

Price Performance

In the past three months, Fiat Chrysler’s stock has lost 26.8%, underperforming 9.3% decline recorded by the industry it belongs to.

 



Zacks Rank & Key Picks

Fiat Chrysler currently carries a Zacks Rank #5 (Strong Sell). A few better-ranked stocks in the auto space are Cummins Inc. (CMI - Free Report) , Oshkosh Corporation (OSK - Free Report) and PACCAR Inc. (PCAR - Free Report) . Cummins and Oshkosh carry a Zacks Rank #2 (Buy) while PACCAR sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Cummins has an expected long-term growth rate of 11.6%. The company’s stock has seen the Zacks Consensus Estimate for third-quarter 2018 earnings being revised 5.4% upward over the past 30 days.

Oshkosh has an expected long-term growth rate of 18.3%. The company’s stock has seen the Zacks Consensus Estimate for fourth-quarter fiscal 2018 earnings being revised 5.8% upward over the past 30 days.

PACCAR has an expected long-term growth rate of 10.8%. The company’s stock has seen the Zacks Consensus Estimate for third-quarter 2018 earnings being revised 1.4% upward over the past 30 days.

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