Ford Recalls Focus ST, Escape Models for Wire Harness Flaw - Analyst Blog

Shares of Ford Motor Co. ( F ) fell 0.7% on Aug 15 after the news of yet another recall. The automaker is recalling around 160,000 Focus ST and Escapes of model years 2013 and 2014 that have a 2-liter engine and were sold in North America.

This is the 11 th time that the 2013 Escape is being recalled. Of the recalled vehicles, 133,000 cars are in the U.S. and the rest are in Canada and Mexico.

According to reports, manufacturing defect in the wiring harnesses of some of these cars might lead to transmission of wrong signals to the powertrain control module. This can result in several problems, such as turning on of the engine malfunction indicator light, loss of power in the engine or stalling of the vehicle, which can result in an accident. However, Ford is not aware of any accidents or injuries due to the issue.

The news followed another recall by Ford the previous day. The automaker recalled the 2012-2014 Ford Edge and Lincoln MKX; the 2013-2014 Ford Flex and Lincoln MKT; and the 2013-2014 Ford Taurus and Lincoln MKS for wrong installation of a clip in the axle. As a result, the halfshaft can separate from the linkshaft, cutting the power transmission to the wheels. This can lead to a crash or may cause the concerned vehicles to roll away in the park position if the emergency brakes are not applied.

Around 83,250 vehicles were recalled due to this issue. Repairs will begin by the end of the month. The company has no reports of any injury or crash due to the problem.

Ford announced a few other recalls earlier this month, including 1,320 new 2015 Transit commercial vans for possible brake fluid leak that can make braking difficult, 610 new 2015 Transit cargo vans that have inadequate reinforcement in the windowless sliding doors and 1,300 new 2015 Lincoln MKC compact crossovers whose windshields do not meet glass quality regulations.

Currently, Ford carries a Zacks Rank #3 (Hold). Better-ranked automobile stocks that are worth considering include Tesla Motors, Inc. ( TSLA ), Fox Factory Holding Corp ( FOXF ) and Gentherm Inc. ( THRM ). While Tesla sports a Zacks Rank #1 (Strong Buy), Fox Factory and Gentherm have a Zacks Rank #2 (Buy).

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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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