Stellantis Recalls Over 154K Jeep Plug-Hybrid SUVs In US Citing Fire Risk

Chrysler parent Stellantis NV STLA is recalling 154,032 Jeep plug-in hybrid SUVs in the U.S. owing to fire risks, the company said in a statement on Monday.

What Happened: The company is recalling nearly 154,000 vehicles in the U.S., 14,038 in Canada, 673 in Mexico, and about 25,502 outside North America, the company said, taking the total recall population around the globe to 194,245 units.

The company decided to recall the vehicles after a routine review of customer data unveiled 13 fire instances when the vehicles were parked and turned off. The recall population includes model year 2020-2024 of the Jeep Wrangler 4xe and 2022-2024 Jeep Grand Cherokee 4xe SUVs.

Instructions For Drivers: To reduce the risk of vehicle fire, the company advised owners not to recharge the vehicles but to park them away from structures or other vehicles until the remedy is deployed. The fix is ‘imminent,’ the company added.

Stellantis did not immediately respond to Benzinga’s request for comment on the cause of the fires.

Why It Matters: Stellantis also lowered its financial guidance for 2024 on Monday as it seeks to bring down inventory levels in the U.S. The company now expects an adjusted operating income margin of between 5.5 and 7% for FY 2024, down from its previous outlook of double-digit margins.

The company now also expects industrial free cash flow in the range of negative five billion euros and negative 10 billion euros versus the prior positive cash flow expectations.

The company is targeting dealer inventory of no more than 330,000 units by year-end 2024 in the U.S.

Price Action: Stellantis shares closed down 12.5% at $14.05 on Monday. The stock is down 39% year-to-date, according to data from Benzinga Pro.

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Photo courtesy: Stellantis