Ford Motor Co.
) revealed that it would recall 230,000 units of few minivans
lineups due to a corrosion problem that is preventing the
fold-down third-row seats from locking in place.
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The automaker would recall 196,500 units of Ford Freestar and
Mercury Monterey minivans from 2004 through 2007 model years in
the U.S. and the remaining 33,500 units in other countries,
mainly Canada. The recall would take place in Conn, Del, Ill,
Ind, Iowa, Maine, Md, Mass, Mich, Minn, Mo, N.H., N.J., N.Y.,
Ohio, Pa, R.I., Vt., W. Va and Wis.
Ford has not yet received any reports of accidents or injuries
related to the problem. Its dealers would install a new third-row
seat mounting bracket and move the latches away from the
potentially corroded area as well as install overlay panels in
the wheel wells to fix the problem.
A few months back, Ford announced plans to recall 89,153
vehicles in the U.S. and Canada that include 73,320 units of its
redesigned Escape SUVs due to overheating problem. The remaining
15,833 vehicles to be covered under the recall included Fusion
midsize sedans due to the same problem.
The recall involved only 2013 SE and SEL models vehicles that are
equipped with 1.6-liter turbocharged engines. The automaker had
revealed that engines in the vehicles can overheat causing
leakage of some fluids leading to fire.
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
STRATTEC Security Corporation
). Both carry a Zacks Rank #1 (Strong Buy).