Ford Motor Company F announced issuing of two safety recalls as well as two safety compliances in North America. The recalled vehicles will be Ford F-150 and Mustang vehicles, Ford Explorer, Taurus and Police Interceptor Utility and Sedan vehicles. While the models to be recalled for safety compliances are Ford F-150 Crew Cab, F-250 and F-350 Super Duty Crew Cab vehicles and Focus vehicles.
Roughly, 935 of 2017 Ford F-150 and Mustang vehicles with ARC passenger air bag inflators will be recalled due to defective deployment of the inflators. This may result in metal fragments striking the vehicle passengers and causing fatal injuries.
The second safety recall will be 263 models of 2017 Ford Explorer, Taurus and Police Interceptor Utility and Sedan vehicles with inaccurate steering gear heat shield fasteners. These flawed devices may corrode and expose the gear system in high temperatures, leading to melting of gear electrical connectors. Also, drivers might face an unexpected loss of power steering assist without prior warning, resulting in accidents at high speeds.
Ford Motor Company Price and Consensus
Approximately, 141,000 2015-17 Ford F-150 Crew Cab and 2017 F-250 and F-350 Super Duty Crew Cab vehicles will be recalled for safety compliance issues. The vehicles will be inspected for left rear inflatable seatbelt assembly and if required, necessary replacements will be made. Insufficient rivet head thickness might lead to separation of left rear inflatable seat belt buckle, which increase chances of injury during a crash.
The second safety compliance recall is for 835 2017 Ford Focus vehicles. The recalled vehicles will be inspected for second-row left-side seatback frame, as inadequate weld penetration between the outboard pivot bracket and the pivot nut joint aggravates the risk of wounds during a crash.
All the recalls will be inspected and if necessary, vehicle parts will be replaced by the company dealers.
Earlier in June, the company had issued one safety recall and two safety compliance recalls in North America. (Read more: Ford to Recall Models for Safety Issues in North America)
Ford has been recalling vehicles regularly to redress safety issues, thereby incurring substantial expenditure and hitting the consumers’ confidence in the brand.
Price Performance
Ford’s shares have declined 11.9% in the last six months, substantially underperforming the 5.3% increase of the industry it belongs to.
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Zacks Rank & Key Picks
Ford currently carries a Zacks Rank #3 (Hold).
A few better-ranked automobile stocks are Ferrari N.V. RACE, Continental AG CTTAY and Toyota Motor Corporation TM, all currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ferrari has a long-term growth rate of 14.1%.
Continental has a long-term growth rate of 7.9%.
Toyota has an expected long-term earnings growth rate of 7%
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