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Ford to Issue Safety & Compliance Recalls in North America

Zacks

Ford Motor Company F is in process to issue two safety recalls and two safety compliance recalls in North America.

The company is issuing safety recall for roughly 202,274 2016 Ford F-150 and 2016 Ford Explorer vehicles with defective front power seats that might lead to looseness in the adjuster assembly of the front seats. Lack of an upper left-hand pivot bolt in the front seat may increase movement during a crash, thereby raising chances of injury.

The above mentioned recall includes 22,620 vehicles in Canada, 2,390 in Mexico, and 177,264 in the United States plus its federalized territories, totaling to 202,274 vehicles in North America. The affected 2016 Ford F-150 vehicles were built at Dearborn and Kansas City assembly plants from Jan 22, 2016 till Apr 19, 2016, whereas within the same time frame, 2016 Ford Explorer vehicles were manufactured at the company’s Chicago assembly plant.

Ford Motor Company Price and Consensus

The second North American safety recall is of approximately, 392 2017 Ford motorhome and commercial stripped chassis vehicles, which have missing valve block ball plugs leading to flawed hydraulic electronic control units. The affected vehicles might discharge brake liquid or ingest air at the time of electronic brake distribution. This loss of fluid might lead to increased stopping distance and make vehicles accident prone.

Of the total 392 units, 390 are from the United States and two from Canada. The affected 2017 Ford F-53 and F-59 vehicles were manufactured at Detroit Chassis within Nov 10-17, 2016.

Further, the company is issuing two safety compliances comprising 566 2018 Ford Expedition and 43 2018 Ford Transit Connect vehicles, respectively.

The safety compliance recall of 2018 Ford Expedition vehicles in North America due to concerns related to second-row seat track travel and inappropriate installation of assembly bolts.

Also, recall of 2018 Ford Transit Connect vehicles is to change faulty air curtains of driver and passenger sides. Inability of the air curtains to inflate may not hold back passengers during a crash, thereby increasing injury risks.

In the Canadian provinces of Alberta, Saskatchewan and Manitoba, Ford is augmenting its safety recall count to roughly 3,396 2011-12 Ford Explorer vehicles. It will be replacing rear suspension toe links that might lead to mud accumulation in the rear frame pocket, resulting in toe link fracture.

Prior to this in October, the company announced to recall 1.34 million units of 2015-17 Ford F-150 and 2017 Ford Super Duty trucks in North America to add water shields to side door latches in the trucks.

In June, the company issued one safety and two safety compliance recalls for its Ford Transit van/bus vehicles (Read more: Ford to Recall Models for Safety Issues in North America).

Price Performance

In the last three months, shares of Ford have outperformed the industry it belongs to. The stock has rallied 10.7% compared with the industry’s 4.2% gain during the period.




Zacks Rank & Key Picks

Ford carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are American Transmission Holdings, Inc. ALSN, American Axle & Manufacturing Holdings, Inc. AXL and Navistar International Corporation NAV, all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

American Transmission has an expected long-term growth rate of 10%. In the last three months, shares of the company have been up 16.9%.

American Axle has an expected long-term growth rate of 8.1%. In the last three months, shares of the company have been up 14.7%.

Navistar has an expected long-term growth rate of 5%. Its shares have been up 16.2% in the last three months.

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