Ford Door-Latch Issues Expand to Trucks
October 18 2017 - 11:03AM
Dow Jones News
By Cara Lombardo
Ford Motor Co. continues to be plagued by faulty vehicle-door
latches as the auto maker on Wednesday expanded the lineup of
affected models for the second time this year.
Ford said it would recall roughly 1.3 million F-150 trucks from
the 2015 through 2017 model years and F-250 Super Duty trucks from
2017. The company expects the fixes to cost $267 million and will
record the charge in its fourth quarter.
Earlier this year, the company recorded a $295 million charge to
repair latches in 211,000 vehicles that included Fiesta, Fusion and
Lincoln MKZ cars and fix a problem with engines that could result
in them catching fire.
Last year, a campaign recalling 830,000 vehicles for similar
issues cost $640 million in third-quarter operating profit. Those
vehicles included some Focus, Escape SUVs and Mustang models.
Ford said latches used in the recalled trucks can freeze and the
springs can bend, causing a door to appear closed when it isn't
fully latched. Dealers will install water shields to prevent
freezing and repair cables if needed in the affected cars at no
cost, the company said.
Ford said it isn't aware of any accidents or injuries related to
the recalled cars.
While the Detroit company doesn't expect the latest recall to
affect its full-year per-share earnings guidance of $1.65 to $1.85,
it is the latest in a series of costly quality problems in recent
years. Faulty door latches have caused problems for Ford since
2015, when it recalled 692,000 small and midsize cars for similar
issues.
This week the Center for Auto Safety, a nonprofit group founded
by Ralph Nader, called on Ford to recall more than a million
Explorer SUVs to address an alleged risk of carbon-monoxide
poisoning after the auto maker offered to repair vehicles to give
"peace of mind" to customers. But Ford hasn't resorted to recalls
and re-emphasized that its offer wasn't due to safety concerns.
Ford shares were flat in morning trading.
Write to Cara Lombardo at cara.lombardo@wsj.com
(END) Dow Jones Newswires
October 18, 2017 10:48 ET (14:48 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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