STLA to Issue Recall of More Than 123K Vehicles to Fix Trim Pieces

Stellantis N.V. STLA, the maker of Jeep, Chrysler, Fiat and Peugeot, is recalling 123,396 vehicles in the United States to fix trim pieces on the driver and passenger windows. The detached trim pieces may come loose and create a road hazard, increasing the risk of crashes, per the National Highway Traffic Safety Administration (NHTSA), as cited in a Reuters article. Per the NHTSA, the quarter trim on these windows may not have been properly secured, which could cause it to detach. The recall affects select 2022–2024 Chrysler Jeep Wagoneer and Jeep Grand Wagoneer models. Per the safety regulators, a repair solution is still being developed. Stellantis is under pressure, especially in North America. U.S. sales have now fallen for eight straight quarters due to delayed launches, high prices and limited incentives.Financials paint a bleak picture. In the first half of 2025, revenues dropped 13% year over year to €74.3 billion. The company swung to a net loss of €2.3 billion from a €5.6 billion profit a year earlier. Adjusted operating income slid to €500 million, with margins collapsing to 0.7% from 10%. Free cash flow turned negative at €3 billion as spending outpaced earnings. Currency pressures, tariffs and weak European light commercial sales deepened the slump.The leadership shake-up adds uncertainty. After CEO Carlos Tavares’ exit, new chief executive Antonio Filosa will outline a turnaround plan in early 2026. Until then, visibility remains low.Near-term risks are heavy. Stellantis projects €1.5 billion in tariff costs for 2025, with €0.3 billion already booked in the first half. Its net financial position slipped to €9 billion, while net debt rose to €6.5 billion after cash burn in the first half of 2025. Another period of negative free cash flow later this year is possible.STLA’s Zacks Rank & Key PicksStellantis carries a Zacks Rank #5 (Strong Sell) at present.Some better-ranked stocks in the auto space are China Yuchai International Limited CYD, Dorman Products, Inc. DORM and PHINIA Inc. PHIN. While CYD sports a Zacks Rank #1 (Strong Buy), DORM and PHIN carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for CYD’s 2025 sales and earnings implies year-over-year growth of 54.1% and 87.7%, respectively. EPS estimates for 2025 have improved 58 cents in the past 60 days.The Zacks Consensus Estimate for DORM’s 2025 sales and earnings implies year-over-year growth of 7.9% and 22.7%, respectively. EPS estimates for 2025 and 2026 have improved 90 cents and $1.13, respectively, in the past 60 days.The Zacks Consensus Estimate for PHIN’s 2025 earnings implies year-over-year growth of 18.1%. EPS estimates for 2025 and 2026 have improved by 16 cents and 12 cents, respectively, in the past 60 days. 5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dorman Products, Inc. (DORM): Free Stock Analysis Report China Yuchai International Limited (CYD): Free Stock Analysis Report Stellantis N.V. (STLA): Free Stock Analysis Report PHINIA Inc. (PHIN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks