Fiat Chrysler (FCAU) Recalls Old Minivans In North America

Fiat Chrysler Automobiles N.V. (NYSE:FCAU) is recalling 297,000 old minivans in North America, due to a wiring problem, which can lead to unintentional airbag deployments, per a Reuters news. The wiring might short-circuit, resulting in driver-side air bag deployment without any prior warning.

Out of the total 297,000 recalls, 209,000 vehicles are from the U.S. and nearly 88,000 from Canada. If needed, the dealers of Fiat Chrysler will be replacing the wiring and add a protective covering over there. The recall is scheduled to begin this late July.

The recall of Dodge Grand Caravan minivans of model year 2011-2012 is due to eight minor injuries, after an initial report of 13.

Of late, several prominent automakers have been recalling tens of millions of vehicles mainly due to air bag problems, among others.

Almost a dozen of automakers has called back 46 million Takata air bag inflators in 29 million U.S. vehicles. These air bags involve defective inflators and propellent devices, leading to improper deployment in the event of a car crash, which results in shooting of metal fragments into vehicle occupants.

Per the U.S. regulators in December, automakers are expected to recall 64-69 million U.S. inflators in 42 million vehicles by 2019. Although, Fiat Chrysler recall is not linked to Takata air bag problem.

Price Performance

Fiat Chrysler has outperformed the Zacks categorized Auto Manufacturers-Foreign industry over the last six months. The company’s shares have surged 20.5% over this period, compared with the industry’s loss of 9.7%.

Zacks Rank & Key Picks

Fiat Chrysler currently carries a Zacks Rank #2 (Buy).

Other companies worth considering in the auto space are Peugeot S.A. (OTC:PUGOY) , Volkswagen (DE:VOWG_p) AG (OTC:VLKAY) and Cummins Inc. (NYSE:CMI) . Cummins sports a Rank#1 (Strong Buy), whereas PEUGEOT and Volkswagen carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Peugeot has an expected long-term growth rate of 12.5 %.

Volkswagen has an expected long-term growth rate of 18.1%.

Cummins has an expected long-term growth rate of 11.7%.

5 Trades Could Profit "Big-League" from Trump Policies

If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.

Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>