Stellantis Issues Recall for Nearly 200,000 Jeep Plug-In Hybrids

Stellantis has recalled 194,000 Jeep Plug-In Hybrid vehicles due to the risk of fire.

At a Glance

194,000 plug-in hybrid Jeep SUVs have been recalled due to fire risk.
The recall impacts 2020-2024 Jeep Wrangler and 2022-2024 Jeep Grand Cherokee.
The recalls span the U.S., Canada, Mexico, and other regions.
Owners are advised to park vehicles outside and not recharge batteries.
Stellantis faces financial challenges and external competitive pressures.

Details of the Jeep Recall

Stellantis has announced a recall of 194,000 plug-in hybrid Jeep SUVs, specifically the 2020 through 2024 model year Jeep Wrangler and the 2022 through 2024 Jeep Grand Cherokee, following reports of 13 fires linked to a defect in a battery component. This significant recall affects roughly 154,000 vehicles in the United States, 14,000 in Canada, 700 in Mexico, and nearly 26,000 outside North America. The issue was flagged during a routine review of customer data that led to an internal investigation by Stellantis.

The company has advised owners to park their vehicles outside and away from structures and other cars until the necessary repairs are completed to mitigate any risk. Further, owners are encouraged to deplete the battery charge and avoid recharging until an official solution is made available, which Stellantis claims will be imminent. Stellantis estimates that around 5% of the affected vehicles may have the defect, which has led to the reported fires — all of which occurred when the vehicles were parked and turned off.

Stellantis says it is recalling some 2020 through 2024 model year Jeep Wrangler and 2022 through 2024 Jeep Grand Cherokee plug-in hybrids. https://t.co/zrzfbBzAmH

— NBC News (@NBCNews) October 1, 2024

The Financial Challenges of Stellantis

Amidst this recall, Stellantis is grappling with financial challenges in North America. The automaker has projected an adjusted operating income margin of 5.5% to 7% for 2024, which is lower than originally expected. Stellantis has outlined a strategy to navigate its financial difficulties. This plan includes reducing U.S. dealer inventory to a maximum of 330,000 units by the end of 2024, elevated from an early 2025 target. Other measures consist of cutting over 200,000 North American vehicle shipments in the latter half of the year and increasing incentives to boost sales of older models.

Stellantis is also addressing competition from Chinese automakers. The company has announced layoffs at several U.S. manufacturing facilities as part of its restructuring efforts. Despite these formidable challenges, Stellantis remains optimistic about leveraging its competitive advantages and expects stronger performance by 2025. The company’s third-quarter U.S. sales numbers, which reportedly have seen significant declines, are anticipated to be released soon.

Looking Ahead for Stellantis

The fire risk associated with the battery component of the Jeep Plug-In Hybrid vehicles has raised significant safety and financial concerns for Stellantis. As the company works to resolve these issues, vehicle owners are urged to take precautionary measures to ensure safety. The announcement of the recall and the proactive steps taken by Stellantis, such as depleting battery charges and advising against recharging, demonstrate the automaker’s commitment to consumer safety.

The forthcoming results and measures implemented will be pivotal in determining the future trajectory of Stellantis amid an increasingly competitive automotive industry.