The U.S. auto safety supervisory body, The National Highway
Traffic Safety Administration (NHTSA), has announced an
investigation into steering problems in 500,000
Ford Motor Co.
) vehicles. The inspection is based on NHTSA's concern that the
heat shield in Ford's vehicles may get rusted, eventually leading
to steering shaft blockage.
The vehicles to be inspected include Crown Victoria, Grand Marquis
and Marauder of model years 2004 to 2007. NHTSA also confirmed
reports of 5 complaints and one injury caused by the steering
glitch. The injury occurred as the steering wheel froze when the
driver entered a highway entrance ramp. The vehicle rolled over and
Last month, NHTSA reviewed consumer reports that indicated the
leakage of exhaust fumes into the passenger cabin in Ford Explorer
of model years 2011 to 2014. These fumes contain carbon monoxide
(CO), prolonged exposure to which may harm the occupants of the
vehicle. The emission is also accompanied with a strange odor, per
Ford is also reviewing the matter, for which it has received
numerous customer complaints. If the NHTSA finds this to be a
safety issue, Ford will be forced to recall these vehicles. The
automaker might also be subjected to a fine.
Automobile safety issues have been garnering significant media
coverage this year, mainly due to the late recall of
General Motors Co.
) vehicles with faulty ignition switches. Earlier this year, the
automaker agreed to pay a fine of $35 million to the U.S. safety
regulators for the late recall.
Ford currently carries a Zacks Rank #3 (Hold). Better-ranked
automobile stocks worth considering include
China Automotive Systems Inc.
), both of which sport a Zacks Rank #1 (Strong Buy).
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FORD MOTOR CO (F): Free Stock Analysis Report
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CHINA AUTO SYS (CAAS): Free Stock Analysis
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