Stellantis Stock Slips After US Regulator Probes 287,000 Chrysler Minivans Over Concerns Regarding Electric Power Steer

The U.S. auto safety regulator, the National Highway Traffic Safety Administration (NHTSA), announced on Monday that it has opened an investigation into 287,000 Chrysler Pacifica vehicles due to concerns about intermittent loss of electric power steering (EPS) during gradual turns.

The probe includes model year 2017-2018 Pacifica minivans, including some plug-in hybrids. The NHTSA said that its Office of Defects Investigation (ODI) opened the probe to assess the scope, frequency, and potential safety consequences of alleged defects related to the EPS system.

On Stocktwits, retail sentiment around Stellantis stock stayed within ‘neutral’ territory over the past 24 hours, while message volume stayed at ‘high’ levels. Shares of the company traded 2% lower at the time of writing.

A Stocktwits user noted that the stock is “getting blasted” once again.

The regulator said that ODI received 94 reports of a condition in which the steering system exhibits a sticking sensation during gradual turns, particularly when the steering wheel is
positioned near the 11 o'clock or 1 o'clock position. During these events, increased steering effort is required to return the wheel to the center, the complainants alleged. Some also noted that this is followed by a sudden reactivation of EPS assistance, which may result in an oversteer condition.

This behavior of the electric power steering could increase the risk of a crash, particularly at higher speeds, the NHTSA noted. However, the regulator is not aware of any crashes, fires, or injury incidents related to the alleged complaint.

STLA stock is down 32% this year and about 43% over the past 12 months. 

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