Stellantis Under New Federal Recall Investigation For Gear Shifter Issue

Stellantis N.V. STLA shares are trading relatively flat on Wednesday, following a batch of mixed news, including a federal investigation, solid brand performance, and a corporate update.

The company is facing a federal recall probe by the U.S. National Highway Traffic Safety Administration (NHTSA) concerning nearly 299,000 Stellantis vehicles.

The investigation, known as Recall Query RQ25002, is focused on gear shifter cable bushings, which could deteriorate and detach, potentially causing the transmission to remain in an unintended gear despite the shifter appearing normal. This poses a risk of the vehicle rolling away if the driver exits without it being in PARK.

Also Read: Stellantis Trials New 5-Minute Battery Swapping Tech In Fiat 500e Fleet: Report

This issue was previously addressed in a 2019 recall (19V-293) for 2013–2016 Dodge Dart vehicles, but 44 complaints of recurring problems prompted the new probe to assess the effectiveness of the prior fix and explore other potential causes.

In corporate news, the company announced it will report its first-half 2025 financial results on Tuesday, July 29.

In a separate release, Stellantis said FCA US reported a total of 309,973 vehicles sold in the U.S. during the second quarter of 2025, down 10% from the prior year.

However, the Ram and Jeep brands showed strength, with the Ram 1500, ProMaster van, and Jeep Wrangler among the standout performers.

The Ram brand reported a 5% quarterly sales increase, led by a 17% boost in Ram 1500 deliveries. Jeep Wrangler sales climbed 23% year over year, while the plug-in hybrid 4xe variant recorded its best April since launch.

From the first quarter to the second quarter, Ram sales rose 18%, and Jeep Wrangler sales jumped 26%. Jeep Gladiator, Grand Cherokee, and Compass models also posted sequential growth.

The company noted over 10,000 orders in just one day following the return of the HEMI V-8 engine to Ram’s lineup.

Year-to-date, Ram retail sales rose 25%, while Jeep and Dodge also delivered gains. Fiat saw notable growth, with Fiat 500e sales up 286% compared to the first half of 2024.

With fresh marketing campaigns tied to upcoming blockbuster films and a new powertrain warranty for Ram vehicles, Stellantis appears to be positioning its portfolio for continued engagement.

Additionally, the Chrysler brand is celebrating its 100th anniversary with special edition releases and events.

According to Benzinga Pro, STLA stock has lost over 48% in the past year.

Price Action: STLA shares are trading lower by 0.05% to $10.22 at last check Wednesday.

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