Ford Motor Co.
) has decided to recall 13,493 Edge SUVs in China to repair
faulty fuel systems, according to Reuters. Inferior quality of
the fuel pulsation damper used in the vehicles might crack and
lead to fuel leakage. This may eventually lead to fire.
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Manufactured between Sep 2, 2010 and Apr 25, 2013, the recalled
vehicles possess a 2.0-liter engine. Ford will start recalling
the vehicles from Feb 21, 2014.
Ford recently recalled 27,933 Edge crossover vehicles of model
years 2012 and 2013 in the U.S. to fix the same fuel line
problem. This defect was discovered through warranty claims.
However, there is no report of fire or injuries due to the
problem. The owners of the crossover will be notified about the
problem in February and the mending will be done for free.
A Chinese joint venture of Ford also recalled 81,000 Kuga
crossovers last month. The recall was made to fix a defective
Not only Ford, other automakers are also recalling vehicles for
several reasons. Recently,
) recalled 2.64 million vehicles across the globe to rectify
drive system and electronic problems.
Ford posted earnings per share of 31 cents in the fourth quarter
of 2013, which is in line with the fourth quarter of 2012 (all
excluding special items). With this, the company has surpassed
the Zacks Consensus Estimate of 28 cents.
Revenues in the quarter grew 3.6% to $37.6 billion, exceeding the
Zacks Consensus Estimate of $35.47 billion. The improvement was
attributable to increased wholesale volumes in the automotive
Safety recalls are detrimental to Ford's brand image and are
likely to hamper growth prospects. Ford currently carries a Zacks
Rank #5 (Strong Sell).
Some better-ranked automobile stocks worth considering are
Tesla Motors, Inc.
Dongfeng Motor Group Co. Ltd
). Tesla carries a Zacks Rank #1 (Strong Buy) while Dongfeng
Motor is Zacks Rank #2 (Buy) stock.\