23 Apr

Why Fiat Chrysler Stock Tanked 5% on Tuesday

WRITTEN BY John Parker

Fiat Chrysler stock

In April so far, Italian-American auto giant Fiat Chrysler Automobiles (FCAU) has outperformed the broader market by a wide margin after underperforming in the first quarter. As of April 22, Fiat Chrysler stock was up 11.2% month-to-date, compared to 2.6% gains in the S&P 500 Index. Other mainstream automakers General Motors (GM), Ford (F), Toyota (TM), and Honda (HMC) have risen 6.5%, 8.2%, 5.2%, and 4.3%, respectively, in April so far.

Why Fiat Chrysler Stock Tanked 5% on Tuesday

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Why FCAU stock fell today

On Tuesday at 2:22 PM ET, Fiat Chrysler stock was trading with about 5.0% losses for the day against 0.8% gains in the S&P 500 Index. Among its peers, GM, Toyota, and Honda were up 0.7%, 0.5%, and 0.4%, respectively, while Ford was down 0.4%.

Earlier today, NHTSA (National Highway Traffic Safety Administration) announced the expansion of its “probe into potentially defective air bags to 12.3 million vehicles,” Reuters reported. The report noted that the regulatory authority is upgrading its probe “to an engineering analysis, a step required before it can seek to compel recalls.”

This update came as bad news for many automakers, including Fiat Chrysler, as it installed these potentially faulty airbags in its vehicles manufactured between 2010 and 2019.

Last week, Fiat Chrysler announced a recall of about 320,000 vehicles units of Dodge Dart compact cars in North America due to a faulty part that “could allow the shift cable to detach from the transmission,” Reuters reported.

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