No Publicity Is Bad Publicity, Except Maybe for FCAU - Investorplace.com

The automobile industry made headlines recently when Fiat Chrysler Automobiles ( FCAU ) was slapped with a record-breaking $105 million fine as a result of mishandled safety recalls of millions of its Ram pickup trucks. The stock has fallen about 4. 5% since the news broke, and while the PR world insists that “no publicity is bad publicity,” I have to argue in this case. Some of its many brands include Fiat and Chrysler — as the name suggests — as well as Jeep, Dodge, Ram, Ferrari and Maserati. The company is located in 40 different countries, with its commercial relations expanding to about 150 countries. As a result of poorly executing 23 different recalls of more than 11 million defective vehicles — which management eventually admitted to doing — the National Highway Traffic Safety Administration imposed a whopping $105 million fine on the company. In addition, FCAU may have to buy back up to 500,000 Ram pickup trucks as a result of defective steering parts that could lead to loss of control, which may cost the company as much as $2. 5 billion. Top 10 Dow Dividend Stocks for August The news of FCAU’s settlement is concerning from both an investor’s perspective as well as a customer’s. Source: investorplace.com