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Stellantis (STLA) Recalls 200K Vehicles to Fix ESC Issue

Stellantis STLA is recalling 211,581 pickup trucks and SUVs due to a defect in software that could disable their electronic stability control (ESC) systems.

The problem originates from a defective anti-lock braking system (ABS), which deactivates the ESC, a critical safety feature preventing loss of steering in emergencies, such as on icy or flooded roads.

Per the National Highway Traffic Safety Administration (“NHTSA”), using a vehicle with a disabled ESC increases the risk of crashes. Studies show that ESC systems significantly reduce fatal collisions, especially single-vehicle and rollover crashes.

Since 2012, the NHTSA has required all new passenger cars to include ESC.

The recall affects the 2022 Dodge Durango, and 2022 Ram 2500 and 3500. Nearly 158,000 Ram 2500 pickups, more than 53,000 Durangos and 524 Ram 3500s are involved. Affected vehicle owners might see the ABS warning light illuminated when starting their car.

Stellantis will notify affected owners in late July, offering free updates to their anti-lock braking systems.

Zacks Rank & Key Picks

STLA currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the auto space are Blue Bird Corporation BLBD, Oshkosh Corporation OSK and American Axle & Manufacturing Holdings, Inc. AXL, 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 consensus estimate for BLBD’s 2024 sales and earnings suggests year-over-year growth of 17.29% and 155.14%, respectively. The EPS estimates for 2024 and 2025 have improved 63 cents and 69 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for OSK’s 2024 sales and earnings suggests year-over-year growth of 9.86% and 11.92%, respectively. The EPS estimates for 2024 and 2025 have improved 12 cents and 10 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for AXL’s 2024 sales and earnings suggests year-over-year growth of 3.05% and 544.44%, respectively. The EPS estimates for 2024 and 2025 have moved up 3 cents and 9 cents, respectively, in the past 30 days.

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American Axle & Manufacturing Holdings, Inc. (AXL) : Free Stock Analysis Report

Oshkosh Corporation (OSK) : Free Stock Analysis Report

Blue Bird Corporation (BLBD) : Free Stock Analysis Report

Stellantis N.V. (STLA) : Free Stock Analysis Report

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