Ford Motor Co. (F) has been cleared in an investigation by the National Highway Traffic Safety Administration (“NHTSA”) related to rusting of the heat shield of some of its vehicles. According to the 18 complaints received by the agency, the rusting could dislocate the heat shield and jam the steering shaft.
The investigation, which was started in July this year, covered over 500,000 Ford Crown Victoria, Mercury Grand Marquis and Mercury Marauder vehicles of model years 2004 to 2007. However, NHTSA’s investigation revealed that the rusting was very rare. It occurred in as few as 1.6 vehicles per 100,000 units.
Moreover, six of the complaints received were from the same police station. However, the station managed to fix the problem in 2011 and did not report any further issue since then. Another report was related to a rollover crash on a highway entrance ramp. However, this report could not be verified.
Consequently, the investigation has been closed without asking for a recall. However, the NHTSA clarified that closing of the investigation does not imply that any safety issue was not detected by it.
The NHTSA also closed an investigation into reports of unintended braking in some vehicles of General Motors Company (GM) without seeking a recall. The involved vehicles are 100,000 Chevrolet Impala sedans of model year 2014.
Ford currently carries a Zacks Rank #5 (Strong Sell). Investors interested in the auto industry could consider better-ranked stocks like Douglas Dynamics, Inc. (PLOW) and STRATTEC Security Corporation (STRT), both sporting a Zacks Rank #1 (Strong Buy).
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