Ford (F) Recalls 2.6M Vehicles to Replace Faulty Takata Airbags
Ford Motor Company F recently announced two safety recalls in North America. The first recall consists of about 2.6 million cars, SUVs, and trucks in the Unites States and its territories, 274,737 in Canada and 46,078 in Mexico to replace driver-side Takata airbags.
The announcement comes after the National Highway Traffic Safety Administration (NHTSA) denied the Detroit automaker’s petition in January to exempt several models from the recall process. Affected vehicles include 2006-2012 Ford Fusion, Lincoln Zephyr and MKZ sedans; 2007-2010 Ford Edge and Lincoln MKX SUVs; 2006-2011 Mercury Milan sedan and 2007-2011 Ford Ranger pickup truck.
In the affected vehicles, the driver-side front airbag inflators contain a calcium sulfate desiccant, which may degrade after long-term exposure to high humidity that, in turn, can cause the inflator to rupture during airbag deployment. While this condition could result in serious injury or death, Ford isn’t aware of any reports of such rupture. Unlike previously recalled Takata airbag parts, these driver-side airbags contain a moisture absorbing desiccant and perform differently.
The company had argued that a safety recall is not warranted for the driver-side airbag and had filed a petition with the NHTSA for the same in August 2017. However, the company’s petition was denied by NHTSA in January 2021, thus requiring the automaker to proceed with the recall accordingly. The reference number for this recall is 21S12.
Dealerships will replace the driver-side airbag inflator or airbag module, as needed. Owner notifications will begin from the first week of April.
The Takata inflator saga has triggered massive recalls by various auto biggies including Toyota TM, Honda HMC and General Motors GM. More than 25 people have been killed worldwide by injuries inflicted by the defective Takata airbag inflators.
Additionally, a second safety recall has been issued by Ford to recover tires cured beyond specification by the supplier — Continental Tire of America. The affected tires may experience a framework break in the sidewall leading to a sudden air loss. The same problem could also lead to a belt edge separation, which could lead to a partial or complete tread or belt loss.
While these conditions may increase the risk of a crash or flat tire, Ford is not aware of any reports of accidents or injuries related to the issue. This recall affects 15,769 vehicles in the United States and federal territories, 3,082 in Canada, and 138 in Mexico. The action covers certain 2018-2020 Ford F-250 and F-350 Super Duty models, some 2018 Ford F-150 pickups, and certain 2019 Ford Escape vehicles. The Ford reference number for this recall is 21S10.
Owner notifications will commence during the week of Mar 29. When owners receive their notifications, they can bring their vehicles to dealers who will inspect the tires and replace those that match the suspect tire list. The tire list has been provided to Ford by Continental Tire of America.
Ford currently carries a Zacks Rank of 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Notably, shares of Ford have appreciated 52.1% year to date compared with the industry’s growth of 4.9%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ford Motor Company (F) : Free Stock Analysis Report
Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report
Toyota Motor Corporation (TM) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
