Some Ford vehicles in North America and Europe are facing problems with engine fires and doors opening up unexpectedly. These issues have forced the automaker to recall 570,000 vehicles from these countries.
Ford recall to hit Q1 profits
More than 360,000 vehicles in North America and Europe have been recalled due to engine fires. In North America, the recall includes various models like 2014 Escape SUVs, Transit Connect small vans released between 2013 and 2015, 2014 and 2015 compact Fiesta STs, and 2013 and 2014 Fusion midsize cars, notes CNBC.
In Europe, the recalled models included C-Max hybrid and Focus small cars released between 2010 and 2015 and Transit Connect vans released between 2013 and 2015. All these vehicles have four-cylinder turbocharged engines with 1.6 liter capacity.
Q2 Hedge Funds Resource Page Now LIVE!!! Lives, Conferences, Slides And More [UPDATED 7/6 22:21 EST]
Simply click the menu below to perform sorting functions. This page was just created on 7/1/2020 we will be updating it on a very frequent basis over the next three months (usually at LEAST daily), please come back or bookmark the page. As always we REALLY really appreciate legal letters and tips on hedge funds Read More
In a press release on Wednesday, the company said, “Customers can continue to drive their vehicles, but should see their dealer if their vehicle exhibits a coolant leak, overheating or frequently needs coolant added. When service kits are available, dealers will install a coolant level sensor with supporting hardware and software at no charge to the customer.”
A spokeswoman said owners can continue to drive their vehicles safely, and the company will inform the customers via mail on how to check and refill coolant. The recalls will hit the company’s profits in the first quarter and will lead to a decline of $295 million in pretax earnings, the company said in a filing with securities regulators on Wednesday.
Fire risk and door latch trouble
The engines were prone to getting overheated quickly and then catching fire. The prime cause is that coolant circulation is not good enough, leading to cracks in the cylinder head resulting in a pressurized oil leak too.
Such sudden fires are dangerous to people inside cars, though no injuries have happened yet in any of the 29 reported fire incidents in the U.S. and Canada, said Ford. The other defect in the side door latch that might break at any moment, resulting in the door opening while the car is in motion, has not resulted in any injuries or crashes yet either.
For Ford, door latches have been a cause of worry for the past three years, resulting in the recall of more than 3 million vehicles and investigations by the National Highway Traffic Safety Administration.
On Wednesday, Ford shares closed up 0.26% at $11.68. Year to date, the stock is down almost 4%, while in the last year, it is down almost 11%.