Ford Leads in the Number of Recalls, Faces Costly Penalties
NHTSA filing states that fuel injectors in some vehicles may crack, causing leaks that could lead to a fire. Drivers might notice a fuel smell, warning lights, smoke, or flames. According to NHTSA's data, Ford has been topping recall filings since 2020, signaling its struggle with quality. Ford's consent order with NHTSA might also be a reason why old and new recalls have been surfacing lately. This consent order also resulted in Ford agreeing to pay up to $165 million in fines, the second-largest civil penalty in NHTSA history, following the Takata airbag case.
Ford has responded to this issue with a software update that would redirect fuel away from ignition sources, but only as a temporary fix. Although no injuries resulting from this issue have been reported, eight vehicles experienced underhood fires. Ford claims that six of these vehicles had not been installed with the recommended software update. The company had a history of two similar issues that resulted in a recall of 42,000 vehicles. This recall supersedes the prior recalls, for which remedy developments are underway.
Shares of Ford have slumped 16.7% over the past year compared with the industry's 4.2% decline.
Image Source: Zacks Investment Research
F's Zacks Rank & Key Picks
F currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the auto space areFerrari N.V. RACE, PACCAR Inc. PCAR and Westport Fuel Systems WPRT. While RACE sports a Zacks Rank #1 (Strong Buy) at present, WPRT and PCAR carry a Zacks Rank #2 (Buy) each. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for RACE's current-year earnings is pegged at $9.89 per share, indicating a 7.97% year-over-year rise.Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 10.75%. RACE's shares have gained 15.8% in the past year.
The Zacks Consensus Estimate for WPRT's 2025 loss is pegged at $1.27 per share, indicating an improvement of 40.93% from year-ago levels. The company's earnings beat the consensus estimate in three of the trailing four quarters.
The Zacks Consensus Estimate for PCAR's 2025 earnings is pegged at $5.72 per share. The company's earnings beat the consensus estimate in one of the trailing four quarters, while missing it in the rest.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ford Motor Company (F) : Free Stock Analysis Report
PACCAR Inc. (PCAR) : Free Stock Analysis Report
Westport Fuel Systems Inc. (WPRT) : Free Stock Analysis Report
Ferrari N.V. (RACE) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
27 minutes ago
- Yahoo
Trump signs stablecoin bill into law, capping string of 'Crypto Week' victories
President Trump on Friday signed into law a bill that establishes the first federal framework for dollar-backed stablecoins, one of the biggest victories yet for a crypto industry that has pushed for more favorable oversight in Washington, D.C. "I pledged that we would bring back American liberty and leadership and make the United States the crypto capital of the world, and that's what we've done," said Trump said during a signing ceremony for the GENIUS Act at the White House. Two other crypto bills also passed through the House this week, the CBDC Anti-Surveillance State Act and the CLARITY Act, that served as additional wins for the crypto industry. They prohibit the creation of central bank digital currencies and assign oversight over all digital assets except stablecoins to either the Securities and Exchange Commission (SEC) or the Commodities Futures Trading Commission (CFTC). Both will now go to the Senate, where their ultimate fates are still unknown. The passage of all three bills came after a series of roadblocks and delays as GOP leaders struggled to bring some Republican holdouts in line during a week dubbed "Crypto Week' by backers of the legislation. Trump is also deepening his own financial involvement in cryptocurrencies with several separate ventures. They include World Liberty Financial, a new crypto startup backed by Trump and his sons that has already launched its own US-dollar-pegged stablecoin (USD1) in partnership with BitGo. Stocks with crypto ties have been surging recently as investors anticipated the moves in the nation's capital, notably Coinbase (COIN), Robinhood (HOOD), and newly public stablecoin issuer Circle (CRCL). Read more: Can you buy crypto with a credit card? See the pros and cons. The GENIUS Act signed into law by Trump Friday outlines how US companies can issue and manage dollar-backed stablecoins for payments, giving those digital assets a massive stamp of approval that is expected to encourage wider adoption. It bans members of Congress and their families from earning profits from stablecoins, but not Trump and his family, an omission that irked some Democrats and slowed progress on the legislation earlier this spring. Between Washington and Wall Street, the expectations are riding high for what this legislation ultimately brings. A senior Treasury official said growth in the $260 billion stablecoin market over the months and years ahead will have a significant impact on the dominance of the US dollar and demand for US debt. The legislation is also expected to unleash a wave of new stablecoin entrants as traditional companies ranging from banks to megaretailers consider whether to issue their own coins. "Banks and nonbanks have parity here, so I think the banks will be able to compete in this new payments regime," said Patrick McHenry, the former Republican congressman and House Financial Services chair who helped move forward an earlier iteration of the stablecoin bill in the last Congress. JPMorgan Chase (JPM) CEO Jamie Dimon and Citigroup (C) CEO Jane Fraser both said Tuesday they are planning to get involved in stablecoins, the latest evidence of how Wall Street is pivoting to embrace digital assets. Big banks have convened to explore prospects for launching a collaborative stablecoin network. Dimon, a longtime skeptic of cryptocurrencies, said the bank needs to embrace stablecoins as a way to keep pace with payment rivals. Last month, JPMorgan announced plans to launch a so-called deposit token called JPMD that is somewhat like a stablecoin but available only to JPMorgan's institutional clients. "We're going to be involved in both JPMorgan deposit coin and stablecoins to understand it, to be good at it," Dimon said. Other banks are also paying attention. "I think it's real. I think it's here to stay. I think it's a little overhyped at this point, but we'll figure out the best way that we can get involved," Bruce Van Saun, CEO of Citizens Financial Group (CFG), told Yahoo Finance. The Wall Street Journal has separately reported that Amazon (AMZN) and Walmart (WMT) are exploring stablecoin opportunities. The new wave of competition could upend the traditional payment system, especially if merchants seek to use stablecoins as a way to get around conventional card-based networks such as Visa (V) and Mastercard (MA). The legislation also would empower the Federal Reserve and the Office of the Comptroller of the Currency (OCC) to oversee stablecoin issuers that hold $10 billion or more in assets. Smaller issuers would be under the purview of state regulators. All issuers would be required to hold reserves in cash or US Treasurys, undergo regular audits, and publicly disclose their holdings and redemption processes. Like money market funds, the tokens must aim to be redeemable at face value. But unlike money market funds, stablecoins under this bill cannot pay interest. There's an ongoing debate about how widespread the usage of these digital assets will ultimately be. Stablecoin proponents tout these assets as a haven from crypto's wild volatility and a safer place for traders to store their gains because they can be pegged to non-crypto assets like the dollar. Their near-instant settlement and programmability also carry advantages proponents believe could enhance cross-border transactions and wider access to the US dollar. But there are still concerns among detractors that there could be risks with stablecoins, including the possibility of panic runs among investors. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
27 minutes ago
- Yahoo
Equity Markets Fall as Trump Proposes Higher EU Tariffs
US benchmark equity indexes are on track to close lower on Friday amid reports of President Donald T
Yahoo
27 minutes ago
- Yahoo
'Throw Yourself In With Zealous Passion,' Says Etsy CEO Josh Silverman, Who Went From Theater Major To Running A $5.3 Billion Company
"Throw yourself in with zealous passion," Etsy Inc. (NASDAQ:ETSY) CEO Josh Silverman told Pace University graduates during a commencement speech in May 19. Silverman urged graduates to find work they enjoy. He said over-delivering on every task sparks career-launching opportunities for today's most ambitious new hires. AI Reshapes Early Careers "For me, the most important thing has always been to start by throwing myself in with zealous passion to something that I liked," Silverman said, recounting how failed auditions at Brown University—where he majored in theater— pushed him toward public policy. Payrolls grew by 147,000 jobs in June and the unemployment rate slipped to 4.1%, the Bureau of Labor Statistics reported. Meanwhile, recent college graduates—those aged 22 to 27—faced a jobless rate of 5.8% in early 2025, significantly higher than the general fourth-quarter average. Don't Miss: —with up to 120% bonus shares—before this Uber-style disruption hits the public markets Named a TIME Best Invention and Backed by 5,000+ Users, Kara's Air-to-Water Pod Cuts Plastic and Costs — Artificial intelligence is adding pressure. A May National Bureau of Economic Research paper found that generative AI eventually displaces workers when wage renegotiation fails, though it boosts short-term productivity. The World Economic Forum's Future of Jobs Report, released in early January, predicts AI and data processing will create 11 million roles and replace 9 million by 2030. Gen Z is already adapting. Many are adding micro-credentials instead of waiting on advanced degrees. Enrollments in generative-AI courses jumped 866% year over year, according to Coursera. Employers are responding with stipends for upskilling, a trend Coursera says improves retention and closes skill gaps. "I was an absolute sponge in meetings. I hung out by the water cooler, determined not to miss the most interesting conversations," Silverman said. Trending: $100k+ in investable assets? – no cost, no obligation. "Then life opened a totally unexpected door." That door led from answering phones for former Sen. Bill Bradley (D-NJ) after graduating from Brown University. Three years later, Bradley's chief of staff offered him a job at a boutique consulting firm. Silverman said the experience proved that "small rooms often lead to big doors." "Life shouldn't be full of adventure—it should be an adventure, and don't let that scare you. Embrace it," Silverman told the graduates. Those doors kept opening for him—he co-founded Evite, steered Skype, led consumer products at American Express (NYSE:AXP), and became Etsy's CEO in 2017. "Sitting here, you may not be able to clearly see the opportunities ahead, but you will seize them, shape them, and even create them," Silverman told graduates. For those stepping into a workforce transformed by AI, it was his final challenge—and a call to embrace the unknown with confidence. Read Next: This AI-Powered Trading Platform Has 5,000+ Users, 27 Pending Patents, and a $43.97M Valuation — Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? ETSY (ETSY): Free Stock Analysis Report This article 'Throw Yourself In With Zealous Passion,' Says Etsy CEO Josh Silverman, Who Went From Theater Major To Running A $5.3 Billion Company originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
