Ford (F) Recalls 634K+ SUVs Over Malfunctioning Fuel Injectors
Ford Motor F recently announced that it is recalling more than 634,000 SUVs worldwide on the grounds of a cracked fuel injector that can cause fuel spillage or vapor leakage onto a hot engine leading to fires.
The recall covers Bronco Sport and Escape SUVs from the 2020 through 2023 model years equipped with three 1.5-liter cylinder engines.
Ford has received 20 incidents of fires, including three that ignited nearby structures. The company also stated that it has four reports of fires that were caused less than five minutes after the engines were turned off. Apart from these, the automaker has four injury claims not concerning burns and 43 legal claims attributed to the problem.
Ford is yet to come up with repairs, and once they are made available, owners will need to schedule service with a preferred dealer. Owners will be notified by letters starting Dec 19.
Owners may take their SUVs to the dealer and get a free loaner, free pickup and delivery. Dealers will inspect the injectors and replace them if necessary. Ford has also said that it's extending warranties to cover cracked fuel injectors for up to 15 years. Moreover, dealers will update the vehicles' engine-control software so that a cracked injector can be detected. Drivers will receive a dashboard message to get service. In the event of a pressure drop in the injectors, engine power will be cut off to minimize risk, and drivers will get the space to go to a safe location to stop and call for service.
In September, the company recalled 277,040 passenger cars and pickup trucks in the United States because there are chances of the rearview camera lens getting cloudy and reducing visibility for the driver. The vehicles impacted by the recall have a 360-degree camera system.
The recall covered certain F-Series trucks, namely F-250, 350 and 450 trucks, and the Lincoln Continental, all belonging to the 2017 through 2020 model years.
Of late, Ford has gone through a spate of recalls over quality issues. In June, it issued the first recall of its Ford F-150 Lightning electric pickup trucks. This was due to a safety issue pertaining to the tire pressure monitoring system. It covered trucks with 20-inch or 22-inch all-season tires.
Previously, it recalled 58,000 F-150 trucks over the driveshaft issue. In another instance, nearly 49,000 Mustang Mach-E SUVs were called back due to a malfunction that could result in the engine not starting abruptly or losing propulsion power while in motion leading to dangerous situations, especially on busy roads.
Shares of F have lost 29% over a year compared with the industry’s 51% decline.
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Zacks Rank & Key Picks
F currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked players in the auto space – CarParts.com PRTS, sporting a Zacks Rank #1 (Strong Buy), and Allison Transmission Holdings ALSN and Genuine Parts Company GPC, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
CarParts has an expected earnings growth rate of 85% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 72.7% upward over the past 30 days.
Allison has an expected earnings growth rate of 26.1% for the current year. The Zacks Consensus Estimate for ALSN’s current-year earnings has been revised 3.8% upward in the past 30 days.
Genuine Parts has an expected earnings growth rate of 18.1% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 0.2% downward over the past 30 days.
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