Ford Motor Co.
) revealed that it would recall 3,500 units of 2012 Ford Taurus
and the 2012 Lincoln MKS sedans as well as the 2013 Ford Explorer
sport utility vehicle (SUV) in order to fix their fuel tanks that
can leak after a crash. More than 3,000 units of the vehicles
will be recalled in the U.S.
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Ford manufactured the recalled vehicles at its Chicago assembly
plant. The company built Taurus and MKS models between Jul 2011
and Jan 2012 and the Explorer SUV in Mar 2012.
It has been found that the fuel tanks in the vehicles are
equipped with an improperly molded seam. So far, Ford received
six reports of tanks with a fuel odor or leak due to the problem.
However, the automaker is not aware of any accidents or injuries
associated with it.
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 a late recall of millions of
Last month, Ford announced 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 involved redesigned 2013 Ford
Escape crossover, which has been recalled multiple times last
General Motors Company
) also announced plans to recall 33,700 units of Buick LaCrosse
sedans and Cadillac SRX crossover vehicles globally from the 2013
model year in order to fix a software glitch that could lead to a
crash. General Motors will recall 26,582 vehicles in the U.S. and
the remaining vehicles in Canada, Mexico, the Middle East and
Ford, a Zacks Rank #3 (Hold) 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.
While we remain on the sidelines about Ford, stocks from the same
industry that warrant a look include
) with a Zacks Rank #1 (Strong Buy).