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Dual Recall for Ford - Analyst Blog

Ford Motor Co. ( F ) has announced two recalls for a total of 434,700 vehicles. The first recall pertains to a rusting problem in the underbody parts of 385,750 Escape compact SUVs, which can result in separation of the vehicle subframe and lower control arm. This reduces the control over steering.

Only vehicles of model years 2001 to 2004 that are sold or registered in the U.S. or Canada were recalled. According to Ford, vehicles used in high-corrosion environments are susceptible to rusting, particularly if salt is used to melt ice as it rusts metals. Ford has reports of one crash linked to the problem although no injuries were reported.

The recalled vehicles were sold or registered in Connecticut, Iowa, Minnesota, Ohio, Wisconsin, Delaware, Maine, Missouri, Pennsylvania, Maryland, New Hampshire, Rhode Island, Illinois, Massachusetts, New Jersey, Vermont, Indiana, Michigan, New York, West Virginia, Washington D.C., Ontario, Quebec, Prince Edward Island, New Brunswick, Nova Scotia, and Newfoundland & Labrador.

The second recall involves 48,950 Fusion, Lincoln MKZ, Escape and C-MAX vehicles of model years 2013 and 2014. These vehicles are being recalled as their seat back frames may not have been welded properly.

They do not meet the standards set by the National Highway Traffic Safety Administration. The problem increases the possibility of injuries during a collision. Ford will replace the frames free of cost. However, the automaker is not aware of any injury or crash due to the problem.

Ford currently carries a Zacks Rank #4 (Sell). Some better-ranked automobile stocks worth considering are Tata Motors Limited ( TTM ), Daimler AG ( DDAIF ) and Tesla Motors, Inc. ( TSLA ). All these stocks sport a Zacks Rank #1 (Strong Buy).

DAIMLER AG (DDAIF): Get Free Report

FORD MOTOR CO (F): Free Stock Analysis Report

TESLA MOTORS (TSLA): Free Stock Analysis Report

TATA MOTORS-ADR (TTM): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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