UBS downgraded Stellantis to 'Neutral' from 'Buy' due to a lack of progress in its U.S. market turnaround. Analysts reported low profit flow-through from volumes despite generally healthy market conditions. Elevated dealer inventory levels may force the automaker to implement production cuts or higher sales incentives. UBS subsequently reduced its price target for the stock from €9.5 to €5.8.
Separately, Stellantis issued a global recall for more than 1.5 million Ram 1500 pickup trucks. The recall covers model years 2019 through 2026. Faulty second-row seat belt buckle anchors may not be properly attached, increasing the risk of injury during a crash.
The recall affects approximately 1.27 million vehicles in the U.S. and 156,000 in Canada. An additional 90,000 vehicles are impacted in other international markets.