European automaker Stellantis (STLA) is recalling 54,000 hybrid sport utility vehicles (SUVs) due to faulty brake pedals that could lead to accidents.
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The company, which is headquartered in the Netherlands, said that some SUVs may have been built with a brake pedal that can disengage while the vehicle is being driven. Stellantis said it was aware of 15 cases worldwide where the brake pedal failed to work, resulting in one accident but no injuries.
The recall involves 2024 and 2025 Alfa Romeo Tonale hybrid SUVs and 2024 Dodge Hornet SUVs, which are built on the same platforms at the company’s manufacturing plants. Stellantis said it would fix the issue by reinforcing the brake pedals and that all repairs would be done free of charge.
The Latest Problem at Stellantis
The recall involves 2,280 hybrid SUVs in Canada, 134 models in Mexico, 21,069 vehicles in the U.S., and about 30,517 outside North America, said the company. Stellantis had sold 15,566 Hornets and 2,737 Tonales in America this year through Sept. 30.
The recall of the hybrid SUVs is the latest in a series of setbacks for Stellantis, whose share price is down 40% this year. In late September, Stellantis lowered its 2024 annual guidance, citing deteriorating global conditions and increasing competition in China, the world’s biggest car market.
Is STLA Stock a Buy?
Stellantis stock has a consensus Moderate Buy rating among 18 Wall Street analysts. That rating is based on nine Buy, seven Hold, and two Sell recommendations made in the last three months. The average STLA price target of $22.19 implies 70.30% upside potential from current levels.
