Ford Recalls Edge Crossovers - Analyst Blog

By
A A A

Ford Motor Co. ( F ) recalled 27,933 Edge crossovers vehicles of model years 2012 and 2013 in the U.S. The recall is being made to fix a problem in the fuel line.

All the recalled vehicles were produced from Sep 2010 to Apr 2013 and are equipped with a 2.0-liter engine. A manufacturing defect could lead to a crack in the fuel line pulse damper metal housing of the vehicles, which may lead to fuel odor and leakage. This may eventually lead to fire.

This defect was discovered via warranty claims. However, there is no report of fire or injuries due to the problem to date. The owners of the crossover will be notified about the problem starting February and the automaker will mend the problem for free.

Last month, Ford announced the global recall of 7,329 Lincoln MKZ hybrid vehicles of model years 2013 and 2014. The recall was made to reprogram the powertrain control module. The existent module does not meet U.S. regulatory requirement.

Ford recalled about 7,100 Lincoln MKZ vehicles in the U.S. and around 170 in Canada. The recalled Lincoln MKZ vehicles were manufactured at the Hermosillo Assembly Plant between Apr 26, 2012 and Sep 24, 2013.

Not only Ford, other automakers are also recalling vehicles for several reasons. Recently, Volkswagen AG ( VLKAY ) recalled 2.64 million vehicles across the globe to fix the drive system and electronic problems.

Toyota Motor Corp. ( TM ) also recalled 33,000 cars, pickup trucks and commercial vehicles globally to fix an engine problem. Further, General Motors Co. ( GM ) recalled 60,000 Chevy Malibu midsize cars in the U.S., Mexico and Canada. The automaker is recalling 44,000 Malibu to fix a problem related to window defrosters and another 15,000 Chevy Malibu are being recalled for faulty power seat wiring.

Safety recalls are detrimental to Ford's brand image and growth prospects. The company currently carries a Zacks Rank #5 (Strong Sell).



FORD MOTOR CO (F): Free Stock Analysis Report

GENERAL MOTORS (GM): Free Stock Analysis Report

TOYOTA MOTOR CP (TM): Free Stock Analysis Report

VOLKSWAGEN-ADR (VLKAY): Get Free Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: F , GM , TM , VLKAY

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

83%
58%
69%

Most Active by Volume

55,414,702
  • $15.38 ▼ 0.39%
38,503,210
  • $66.34 ▲ 2.26%
36,466,704
  • $8.36 ▼ 9.52%
35,253,294
  • $26.55 ▲ 1.34%
32,752,347
  • $6.55 ▲ 1.87%
31,778,001
  • $95.22 ▲ 0.19%
28,396,556
  • $51.49 ▼ 0.62%
23,800,987
  • $42.09 ▲ 0.97%
As of 7/11/2014, 04:03 PM