Chrysler Recalls 250,000 Vehicles Over Airbag Deployment Concerns

Chrysler is recalling over 250,000 vehicles (2022-2025 Pacifica and Voyager models) due to potentially faulty airbags that may not deploy in a crash. Insufficient pressure retention from improperly sealed seams could lead to ejection and injury. Dealers will inspect and replace the side curtain airbags at no cost to the owner. Stellantis, Chrysler's parent company, did not immediately comment.

Stellantis (STLA), the parent company of Chrysler, has announced a significant recall affecting over 250,000 vehicles in the United States. The recall, initiated on June 19, 2025, pertains to certain 2022-2025 Pacifica and Voyager models, highlighting defects in the side curtain airbags. The National Highway Traffic Safety Administration (NHTSA) has identified an issue with improperly sealed airbag seams, which could lead to inadequate pressure retention and potential ejection during accidents.

Dealers will inspect the affected vehicles and replace the side curtain airbags at no cost to the owners. The recall underscores the importance of safety features in modern vehicles and the need for prompt resolution of manufacturing defects. While Stellantis has not provided immediate comments on the recall, the company has a history of addressing such issues to ensure customer safety.

Analysts have expressed varied opinions on the potential impact of the recall on Stellantis' stock. According to projections from nine Wall Street analysts, the average target price for Stellantis NV (STLA) is $12.88, with a high estimate of $20.05 and a low estimate of $8.19, indicating an average upside of 26.37% from the current stock price of $10.19 [1]. Additionally, brokerage firms maintain an average recommendation of 2.8, equivalent to a "Hold" status, suggesting a cautious approach to the stock [1].

GuruFocus, a financial data and research platform, estimates a GF Value of $18.25 for Stellantis NV (STLA) in one year, suggesting a substantial 79.1% upside from the current price of $10.19 [1]. This valuation is based on historical trading multiples and future performance estimates.

In conclusion, while the recall may pose temporary challenges for Stellantis, the company's commitment to resolving manufacturing issues and ensuring customer safety is commendable. Investors should closely monitor the situation and consider the potential impact on the company's financial performance.

References:
[1] https://www.gurufocus.com/news/2951613/stellantis-stla-initiates-recall-for-airbag-defects-in-over-250000-vehicles
[2] https://seekingalpha.com/news/4463486-stellantis-recalls-more-than-250k-us-vehicles