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STLA to Issue Recall of More Than 123K Vehicles to Fix Trim Pieces
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Key Takeaways
{\"0\":\"Stellantis is recalling 123,396 Jeep Wagoneer and Grand Wagoneer vehicles to fix window trim issues.\",\"1\":\"H1 2025 revenues fell 13% to EUR74.3B, with a EUR2.3B net loss against a EUR5.6B profit a year earlier.\",\"2\":\"New CEO Antonio Filosa will present a turnaround plan in early 2026 after Carlos Tavares\' exit.\"}
Stellantis N.V. (STLA - Free Report) , 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 Picks
Stellantis carries a Zacks Rank #5 (Strong Sell) at present.
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.
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STLA to Issue Recall of More Than 123K Vehicles to Fix Trim Pieces
Key Takeaways
Stellantis N.V. (STLA - Free Report) , 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 Picks
Stellantis carries a Zacks Rank #5 (Strong Sell) at present.
Some better-ranked stocks in the auto space are China Yuchai International Limited (CYD - Free Report) , Dorman Products, Inc. (DORM - Free Report) and PHINIA Inc. (PHIN - Free Report) . 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.