A malfunction in the rearview cameras forced Stellantis to recall nearly 1 million cars worldwide

Automotive giant Stellantis has decided to recall nearly 1 million vehicles worldwide due to a software glitch that could interfere with the operation of rearview cameras. On August 17, the company’s stock fell 4.5% in New York and closed at $5.12—its lowest level since its debut on the New York Stock Exchange in January 2021.

In the U.S., nearly 850,000 Jeep, Chrysler, Dodge, and Ram vehicles from the 2026–2027 model years are subject to the recall. Another 107,000 vehicles are affected outside the U.S., in Canada, Mexico, and other markets. The recall does not involve physically retrieving the vehicles from owners; the company will simply update the software.

A software glitch has been detected in the multimedia system: as a result, the rearview camera image may not appear on the screen. Such cameras have been required for all passenger cars in the U.S. since 2018. Stellantis is not aware of any accidents or injuries related to this issue, according to a company statement.

Over the past year, the automaker's stock price has fallen by nearly half. This latest recall adds to a string of problems in recent years, as Stellantis tries to rebuild its global business, which has suffered due to past management mistakes, notes The Wall Street Journal.

In August, RBC Capital Markets maintained its “Sector Perform” rating on Stellantis but lowered its price target from €7 to €5 following a meeting with Charlie Christman, head of investor relations. This target price is 13% higher than the company’s closing price in Milan on Monday, August 17.

RBC warns that the new management team’s initial steps do not yet promise a rapid recovery: adjusted operating profit may return to growth in 2027, and North America will remain the main challenge, the Italian automotive portal ClubAlfa wrote at the time.

RBC attributes its current difficulties to decisions made by the previous management—specifically, cuts to commercial, general, and administrative expenses, as well as research and development costs—which led to product issues and recalls. In addition, when designing platforms, priority was given to electric vehicles, MarketScreener reported.

Several other major investment banks downgraded their ratings on Stellantis in August. UBS downgraded its recommendation from “Buy” to “Neutral” and lowered its price target from €9.5 to €5.8: the bank noted that the expected recovery of Stellantis’s U.S. business had not materialized, although the market remained stable. Bernstein changed its rating from “Market Perform” to “Underperform” and lowered its target price from €6.20 to €4. Goldman Sachs maintained its neutral rating but revised its target price from €6 to €5.

This article was AI-translated and verified by a human editor