US Regulator Initiates Recall Query Into Nearly 1.2M Stellantis Ram Trucks: Retail Sentiment Dips

U.S. auto safety regulator National Highway Traffic Safety Administration (NHTSA) said on Monday that it is opening a recall query covering nearly 1.2 million Stellantis NV’s (STLA) Ram trucks.

The probe covers Ram 1500, 2500, 3500, 4500, and 5500 trucks ranging from model year 2013 to 2018.

Shares of STLA are trading down 4.2% in pre-market on Monday.

NHTSA said that it received 14 vehicle owner questionnaire reports and six death and injury reports under its Early Warning reporting program describing failures of the Brake Transmission Shift Interlock (BTSI) system. A failure of the BTSI could lead to a vehicle rollaway.

The Ram trucks covered under the query were previously repaired under recalls aimed at addressing a potential condition that can cause the BTSI locking pin to become stuck, allowing the transmission to be shifted out of the “Park” mode without depressing the brake pedal and/or without having a key in the ignition.

Shifting the transmission out of the “Park” mode without depressing the brake pedal can result in a vehicle rolling away.

NHTSA said that the recall query will review the effectiveness of the recall remedies, understand the root cause of additional vehicle rollaway incidents, and identify any other possible root causes that may affect the performance of the BTSI system.

On Stocktwits, retail sentiment around Stellantis fell from ‘bullish’ to ‘neutral’ territory over the past 24 hours while message volume dipped from ‘high’ to ‘normal’ levels.

Separately, Bank of America on Monday downgraded Stellantis to ‘Neutral’ from ‘Buy’ with a price target of $11.75, down from $16.50. BofA sees a lack of catalyst for the shares and expects "weak" results in 2025 from the company.

The STLA stock is down 21% this year and by about 47% over the past 12 months.

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