Ford Motor Co.
) plans to recall 7,150 vehicles manufactured in November last
year due to a problem with the child lock on the left rear door.
About 5,650 vehicles will be recalled in the U.S. The recall
involves redesigned 2013 Escape crossover, which has been
recalled multiple times last year.
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Ford will inspect 5,638 units of Escape for finding the defect.
Those vehicles were built in Louisville Assembly Plant between
Nov. 14 and Nov. 24 last year.
Further, the company will inspect 1,223 units of Focus cars and
283 units of C-Max vehicles under the same recall. Both the
models were manufactured at Michigan Assembly Plant between Nov.
17 and Nov. 21.
Ford revealed that the child lock on the left rear door in the
vehicles may not function properly when the driver tries to
activate it. However, the driver may incorrectly believe that the
locks are working properly. The automaker is not aware of any
accidents or injuries related to the problem.
On November 30, Ford had announced plans to recall 89,153
vehicles in the U.S. and Canada that include 73,320 units of
Escape and 15,833 units of Fusion. The company had received
reports of 12 fires in Escapes and one in a Fusion.
The redesigned Escape went on sale last spring with a price tag
of $22,470 and came under the scanner of safety regulators
several times that indicate quality problems in manufacturing.
However, Ford has a different take on the issue highlighting how
fast it is resolving the safety issue of the vehicles.
In July, Ford had recalled 11,500 Escape SUVs for fixing fuel
lines leak that can cause fires. In the same month, the company
had said that it would recall 8,266 units of the SUV in order to
fix their improperly installed carpet padding that could cause
braking failures. In September, it again recalled 7,600 units of
Escape in order to fix coolant leaks that can cause engines to
overheat and may lead to fire.
Apart from the redesigned version, Ford had also recalled the
prior model of Escape in late July last year. The automaker had
recalled 485,000 units of old Escapes in the month due to
sticking gas pedals that can cause crashes.
Automotive safety recalls were brought into focus by media after
) announcement of the largest-ever global recall of 3.8 million
vehicles in September 2009, triggered by a high-speed crash that
killed 4 members of a family.
Later on, a string of recalls has led Toyota to face numerous
personal injury and wrongful death lawsuits in federal courts.
Last year, the Transportation Department of U.S. slapped a fine
of $17.35 million on Toyota due to late response regarding a
defect in its vehicles to safety regulators as well as late
recall of those vehicles.
According to the department, it was the maximum allowable fine
under the law for not initiating a recall in a timely manner. The
latest fine adds to $48.4 million imposed by the U.S. government
on the company in 2010 due to late recall of millions of
Ford, a Zacks Rank #4 (Sell) stock, posted a robust 55.0% rise in
earnings per share to 31 cents in the fourth quarter of 2012 from
20 cents in the same quarter of 2011 (all excluding special
items). With this, the company has beaten the Zacks Consensus
Estimate of 26 cents
Ford's fourth-quarter pre-tax profit of $1.7 billion was the
highest in a decade. Meanwhile, net profit surged 55.7% to $1.2
billion from $797 million a year ago. Thanks to the impressive
North American results and, to some extent, solid improvements in
Asia Pacific Africa operations.
Few stocks that are performing well in the industry where Ford
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) Both are Zacks Rank #1 (Strong Buy) stocks.