Ford Door-Latch Issues Expand to Trucks -- Update
October 18 2017 - 2:40PM
Dow Jones News
By Mike Colias
Ford Motor Co. is recalling 1.3 million late-model pickup trucks
in North America to fix faulty door latches, a move expected to
shave $267 million from fourth-quarter profit.
The No. 2 U.S. auto maker said it isn't aware of injuries or
accidents related to the defective latches, which can cause the
door to get stuck or appear closed without being fully latched,
risking it swinging open while the truck is moving. The recall
covers F-150 trucks from model years 2015 to 2017, as well as 2017
Super Duty trucks.
Dealers will install water shields over the latches to fix the
problem, Ford said. Ford's F series pickup-truck line is the
company's highest-volume product and its main profit driver.
In a regulatory filing, Ford said the $267 million expense for
the fix will be reflected in fourth-quarter earnings. The company
also reiterated full-year pretax profit guidance of $1.65 to $1.85
a share. It is scheduled to report third-quarter earnings on Oct.
26.
The recall is the most recent in a string of quality problems
that have hurt Ford's bottom line. The company booked a $295
million charge in the first quarter related to fire risks in some
SUVs and vans, and faulty door latches on some car models. In the
second quarter, problems with the drive shaft in Transit vans cost
$142 million.
Last week, Ford offered a voluntary fix to owners of 1.4 million
late-model Explorer SUVs amid complaints about exhaust fumes
leaking into the interior. Ford hasn't disclosed a cost estimate
for the work, which it described as a complimentary service rather
than a safety recall.
Write to Mike Colias at Mike.Colias@wsj.com
(END) Dow Jones Newswires
October 18, 2017 14:25 ET (18:25 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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