Mistakes in any process are, ultimately, a fact of life. Indeed, automaker Stellantis (NYSE:STLA) found this out when it staged a huge new recall. Shareholders weren’t happy about the recall effort and sent Stellantis shares down fractionally in Tuesday afternoon’s trading accordingly.
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Around 1.2 million vehicles were recalled in a bid to fix some software that can shut down the rear camera. The models impacted were the Jeep Compass, Jeep Grand Cherokee, Jeep Wagoneer, and Jeep Grand Wagoneers from 2022 and 2023. Several breeds of Ram—the Ram 1500, Ram 2500, and Ram 3500 chassis cabs from 2022—also got hit with this, along with Chrysler Pacifica and Dodge Durango models.
Thankfully, the recall should be fairly simple; an online software update will go out, and users will need to accept the update on their in-car media screens. Recall notices will also be mailed, so a fix should be pretty rapid and fairly simple to do.
Leaving Executives Scare Dealers
So, this recall isn’t exactly terrible news; a simple software update should fix most of the problem outright. But there’s another problem that may not be so easily fixed. A recent wave of departures from the top brass is leaving Stellantis dealers of all types wondering if there are bigger problems afoot. Four of the company’s leading executives recently left in the space of about three months, which is a lot to lose in a short period.
One dealer noted that “…the people that know how to sell cars in the United States are leaving,” which could be quite a problem for dealers who do just that.
Is Stellantis a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on STLA stock based on 13 Buys, three Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 29.18% rally in its share price over the past year, the average STLA price target of $28.86 per share implies 41.51% upside potential.
