Ford (F) Announces Safety Recalls in the U.S. and Canada
Ford Motor Company F announced two safety recalls in North America. Of the two recalls, one is of roughly 50,000 120-volt convenience charge cords provided with selected 2012-15 Ford Focus Electric, 2013-15 Ford Fusion Energi and 2013-15 Ford C-MAX Energi vehicles.
When connected with a damaged, corroded or worn-out AC outlet, the 120-volt convenience cords may lead to increased temperature at the wall outlet, which might catch fire. The company is aware of a few such fire reports.
Approximately 50,524 vehicles in North America, accompanied by these charge cords, are defective. Out of the total, 49,197 vehicles are from the United States and its federalized territories, and 1,327 are from Canada.
Ford Motor Company Price and Consensus
Ford Motor Company Price and Consensus | Ford Motor Company Quote
All the defective charge cords will be replaced with the latest version of 120-volt convenience cord, enabled with a thermistor that will discontinue charging incase plug/outlet gets too hot. The cords will be replaced at Ford’s dealership without charging the customers any extra cost.
The other recall is of roughly 100 2018 Ford Edge, 2019 Ford Flex, 2018 Lincoln MKX and 2019 Lincoln MKT vehicles. Built at Oakville assembly plant on May 29, 2018, the affected vehicles don’t have the power supply cable fastener appropriately secured to the alternator or to the starter motor. An inappropriately fastened power supply cable has the potential of an electrical surge, leading to a fire. The recall consists of 87 vehicles in the United States and seven in Canada.
In the last month, Ford issued a recall of approximately 550,000 units of the 2013-2016 Ford Fusion sedan and the 2013-2014 Ford Escape SUV due to chances of bushing detachment that is responsible for holding the shifter cable in the transmission.
Year to date, Ford has underperformed the industry it belongs to. During this period, the company recorded a 22.4% decrease in share price compared with 7.5% decline recorded by the industry.
Zacks Rank & Key Picks
Ford currently carries a Zacks Rank #5 (Strong Sell). A few better-ranked stocks in the auto space are Cummins Inc. CMI, Oshkosh Corporation OSK and PACCAR Inc. PCAR, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cummins has an expected long-term growth rate of 11.6%. The company’s stock has seen the Zacks Consensus Estimate for third-quarter 2018 earnings being revised 5.4% upward over the past 30 days.
Oshkosh has an expected long-term growth rate of 18.3%. The company’s stock has seen the Zacks Consensus Estimate for fourth-quarter fiscal 2018 earnings being revised 5.8% upward over the past 30 days.
PACCAR has an expected long-term growth rate of 10.8%. The company’s stock has seen the Zacks Consensus Estimate for third-quarter 2018 earnings being revised 5% upward over the past 30 days.
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