Ford Motor Co. F is recalling 816,309 additional vehicles globally for defective front passenger seat airbag inflators made by Japanese supplier Takata Corp., after the latter declared them to be defective. The action is part of a planned expansion of vehicles recalled earlier to new geographic regions.
The recalled vehicles include 654,695 in the U.S. and federalized territories, and 161,174 in Canada. The recall covers models including the 2005-09 and 2012 Ford Mustang, 2005-06 Ford GT, 2006-09 and 2012 Ford Fusion, 2007-09 Ford Ranger, 2007-09 Ford Edge, 2006-09 and 2012 Lincoln Zephyr and Lincoln MKZ, 2007-09 Lincoln MKX and 2006-09 Mercury Milan.
Massive recalls are being announced by all automakers for defective Takata airbag inflators that can explode in a crash, sending metal shrapnel into the passenger compartments, causing injury. As a result of the defect, 16 people have been killed and about 180 have been injured worldwide. Almost 100 million vehicles made by 17 automakers have been recalled globally.
Ford has underperformed the Zacks categorized Auto Manufacturers-Domestic industry over the last three months. This was due to poor operating forecasts for 2016 and 2017 as well as concerns related to President-elect Donald Trump’s public criticism of the company’s plans to shift small car production to Mexico.
Share price of the stock increased 5.7% over this period, while the industry saw a 15.9% gain.
Zacks Rank & Key Picks
Penske Automotive has an expected long term earnings per share growth rate of 8.2%. It sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Fox Factory carries a Zacks Rank #2 (Buy). The company has an expected earnings growth rate of around 16.6% for the long term.
GKN holds a Zacks Rank #2 and has a long-term growth rate of 6.3%.
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