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More problems for Fiat Chrysler Automobiles

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Miguel A. Rodriguez
Miguel A. Rodriguez
14 September 2020
More than 1.2 million vehicles recalled over a defective airbag.

Bad news seems to follow the Italian -American automaker, Fiat Chrysler Automobiles. Earlier this month, the company looked for ways to deal with the $6.2 billion special dividends payment and some of its employees’ rage. Now, it joins the companies’ group that recalled some of its cars, such as Volvo.

On Friday, FCA recalled more than 1.2 vehicles globally, with over 900,000 in the United States only.  The recall focuses on the models produced in 2007-2011. An investigation conducted by the company showed that the vehicles have some clips that might loosen and fall over time. Consequently, the airbag from the driver-side can act as projectiles. 

According to current news, the loosen clips have caused 14 potential injuries. However, the FCA investigation showed that the wounds did not affect the front and rear-seat passengers. Still, the company decided not to use such clips anymore. 

Starting from August 2020, owners of the affected vehicles will receive a notice with the instructions that they have to follow to repair the defect. Until then, drivers are not to interfere with the emblem from the steering wheel. 

Despite the bad news, FCA is currently trading higher by almost 2%.

Sources: reuters.com, blackburnnews.com


This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.