Stellantis, the parent company of Chrysler, is facing a significant recall affecting nearly 154,000 Jeep plug-in hybrid SUVs in the U.S. due to fire risks. The company’s decision stems from a review of customer data that revealed 13 instances of fires occurring while the vehicles were parked and turned off.
The recall encompasses Jeep Wrangler 4xe models from 2020 to 2024 and Jeep Grand Cherokee 4xe models from 2022 to 2024. Beyond the U.S., the recall extends to 14,038 vehicles in Canada, 673 in Mexico, and approximately 25,502 units outside North America, totaling a global recall population of 194,245.
In an effort to mitigate the fire risk, Stellantis has advised owners to avoid recharging their vehicles and park them away from structures or other vehicles until a solution is implemented. The company assures that a fix is “imminent.”
This recall comes amidst Stellantis’s announcement of lowered financial guidance for 2024. The company aims to reduce inventory levels in the U.S. and now expects an adjusted operating income margin of between 5.5 and 7% for FY 2024, a significant decrease from its previous outlook of double-digit margins. Additionally, the company anticipates industrial free cash flow in the range of negative five billion euros and negative 10 billion euros, contrasting with prior positive cash flow expectations. Stellantis is targeting a dealer inventory of no more than 330,000 units in the U.S. by the end of 2024.
Stellantis’s stock price closed down 12.5% at $14.05 on Monday, reflecting the impact of the recall and financial guidance adjustments. The stock has experienced a 39% decline year-to-date.
