Fiat Chrysler Automobiles NV announced on Thursday the recall of almost 700 000 Sport-utility vehicles (SUVs) internationally due to a problematic electrical connection, which could prevent vehicle engines from starting or could cause them to stall.
Fiat Chrysler said that nearly 528 500 vehicles in the United States, 34 700 vehicles in Canada, 18 100 vehicles in Mexico as well as 116 500 vehicles in regions outside North America would be recalled.
As of 8:04 GMT on Friday the shares of Fiat Chrysler were gaining 0.42% (EUR 0.056) on the day to trade at EUR 13.496 on the Milan stock exchange.
In New York, Fiat Chrysler shares closed lower for a fourth consecutive trading session on Thursday. The stock went down 0.53% ($0.08) to $14.92, after touching an intraday low at $14.82, or a price level not seen since October 30th ($14.12).
Shares of Fiat Chrysler Automobiles NV have risen 14.30% so far this year, following an 18.95% drop in 2018.
The recall will cover Dodge Durango and Jeep Grand Cherokee SUVs manufactured between 2011 and 2013, Fiat Chrysler said.
The recall will address silicon deposits on the contact points of fuel pump relays, which may interrupt electrical current.
Previously, the company had recalled a large part of the same SUV models in 2014 and 2015 due to faulty fuel pump relays.
Analyst stock price forecast and recommendation
According to CNN Money, the 19 analysts, offering 12-month forecasts regarding Fiat Chrysler’s stock price, have a median target of $17.85, with a high estimate of $20.30 and a low estimate of $12.12. The median estimate represents a 19.64% upside compared to the closing price of $14.92 on November 21st.
The same media also reported that at least 10 out of 20 surveyed investment analysts had rated Fiat Chrysler’s stock as “Buy”, while 8 – as “Hold”. On the other hand, 2 analysts had recommended selling the stock.
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