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Is Ford's Big Problem Rearing Its Ugly Head Again?
Is Ford's Big Problem Rearing Its Ugly Head Again?

Yahoo

time6 hours ago

  • Automotive
  • Yahoo

Is Ford's Big Problem Rearing Its Ugly Head Again?

Ford recently issued two recalls that are not necessarily concerning. The company's higher warranty costs have hurt earnings in the past. Quality improvements will take time to filter through Ford's U.S. fleet. 10 stocks we like better than Ford Motor Company › Let's take a moment to rewind back almost a year ago, when Ford Motor Company (NYSE: F) reported second-quarter earnings for 2024. "It's a code-red situation at Ford after a disaster quarter," Daniel Ives, an analyst at Wedbush Securities, said in comparison to healthy results at crosstown rival General Motors, according to The Detroit News. Part of Ford's "disaster" quarter was due to rising warranty costs, which cover vehicles leaving the factory with defects that later require repairing. In recent years, Ford has continuously found itself near the top in the volume of U.S. vehicles recalled, and it has weighed on the Detroit icon's bottom line. After a couple of recent recalls, is this problem rearing its ugly head again? Not so fast -- let's dig in. In late May, Ford issued a recall for 1,075,299 vehicles in the U.S. over an issue that could prevent the rearview camera from displaying images, which increases the risk of a crash, according to the National Highway Traffic Safety Administration (NHTSA). At first glance, this number is alarming, considering Ford's annual recall volume is generally around 4 million to 6 million total. But not all recalls are created equal, and that's the case here as well. Within months of being contacted by the NHTSA, Ford was able to reproduce the camera failure and fix the software through an over-the-air update, free of charge. That's the clear difference between hardware, which requires a consumer to bring the vehicle to a dealership for repairs, and software that can be fixed over the air. This isn't a recall that's going to cost Ford much, and it certainly won't noticeably weigh on earnings. The next example is a different story. Ford also recently announced that it will recall nearly 30,000 F-150 Lightning electric pickup trucks sold in the U.S.. The reason is a suspension nut loosening or missing entirely. The majority of affected vehicles, or 20,528, are from the 2024 model year, with the remaining from the 2025 model. This is where the hardware vs. software aspect comes into play. To fix the issue for affected vehicles, Ford and Lincoln dealers have to inspect the torque of the nut on the ball joint of the left and right upper control arms. If it passes inspection, the nut is replaced; if it fails inspection, the knuckle and nut will be replaced. This is not only a physical process, but far more expensive than a simple over-the-air blast to fix a million vehicles, essentially all at once. While this recall for hardware will cost Ford, the small volume of vehicles won't move the needle at all for the automaker's financials. For investors, what's important to realize is that while headlines about recalls can be very loud, not all of them are created equal, and these two in particular don't raise any red flags in terms of earnings being affected. Ford has made a focused effort on improving quality over the past few years, and most of the issues are on vehicles produced prior to 2021. Despite the company's focus on improving quality and reducing warranty expenses, management warned that it will take at least 18 months to see the benefits of new processes and lower warranty costs – my guess is perhaps even longer. Before you buy stock in Ford Motor Company, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Ford Motor Company wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,395!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $858,011!* Now, it's worth noting Stock Advisor's total average return is 997% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Daniel Miller has positions in Ford Motor Company. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Is Ford's Big Problem Rearing Its Ugly Head Again? was originally published by The Motley Fool Sign in to access your portfolio

Ford Announces Concerning Recall of Explorer, Nearly 500,000 Affected
Ford Announces Concerning Recall of Explorer, Nearly 500,000 Affected

Yahoo

timea day ago

  • Automotive
  • Yahoo

Ford Announces Concerning Recall of Explorer, Nearly 500,000 Affected

Over the past month, Ford has announced recalls of more than 1.5 million vehicles, with the latest recall impacting nearly 500,000 sport utility vehicles. Earlier this month, Ford revealed a recall on its F-150 Lightning, which just surpassed Tesla's Cybertruck as the best-selling electric truck on the market, according to Electrek. "Certain vehicles may have an improperly torqued nut on the ball joint which secures the front upper control arm to the knuckle assembly. An improperly torqued nut on the ball joint can result in separation of the front upper control arm from the knuckle assembly," Ford said in a statement regarding its latest recall on nearly 30,000 trucks. That announcement came just a few weeks after the National Highway Traffic Safety Administration revealed a recall from the auto manufacturer for more than one million vehicles ranging over 44 different makes and models after a software error emerged that can cause the rearview camera image to delay, freeze, or not display when the vehicle is in reverse. "Ford Motor Company (Ford) is recalling certain 2021-2024 Bronco, F-150, 2021-2024 Edge, 2023-2024 Escape, F-250, F-350, F-450, F-550, F-600, 2022-2024 Expedition, 2022-2025 Transit, 2021-2023 Mach-E, 2024 Ranger, Mustang, 2021-2023 Lincoln Nautilus, 2022-2024 Navigator, and 2023-2024 Corsair vehicles," the NHTSA announced. This time around the American icon is recalling one of its most popular offerings: the Explorer. Ford opened the recall on models from June 11, 2015 - April 19, 2017 after "a B-pillar trim applique that detaches while driving can create a road hazard for other road users, increasing the risk of a crash," the company revealed. The remedy for the recall is still in the works. Dealers are expected to be notified on May 27, 2025 while the mailing of interim owner notification letters is expected to begin June 9, 2025 and is expected to be completed by June 13, Announces Concerning Recall of Explorer, Nearly 500,000 Affected first appeared on Men's Journal on Jun 5, 2025

Ford Is Recalling Almost 500,000 Explorers, And There's No Fix Yet
Ford Is Recalling Almost 500,000 Explorers, And There's No Fix Yet

Yahoo

time2 days ago

  • Automotive
  • Yahoo

Ford Is Recalling Almost 500,000 Explorers, And There's No Fix Yet

Another week, another Ford recall covering hundreds of thousands of vehicles, according to documents filed with the National Highway Traffic Safety Administration. The latest in an ongoing era of recalls is not focused on backup cameras or broken control arms, but something a little less worrisome from a safety perspective: it focuses on faulty interior trim pieces on 2016–2017 Ford Explorer units. Specifically, the May 23, 2025, recall is meant to address an issue with the B-pillar trim adhesive and connectors that allow the trim to fall off. Ford's filing with the safety watchdog says that an inconsistent usage of hand rollers at the factory means the foam donut inside the B-pillar is subject to increased outward reaction force and... well, the piece simply isn't attached very well. The B-pillar trim could detach while the vehicle is moving, increasing the risk of a crash for other road users should the part fall into the road. A total of 492,145 Ford Explorer units are included in this recall, with NHTSA estimating that 4% of the nearly half-a-million units will suffer from the defect. Ford says customers will be able to spot the B-pillar trim defect when opening and closing the forward doors. Increased wind noise or even rattling are other possible side effects. Ford first identified this issue in 2019, when a technical service bulletin was published to dealers detailing how to repair loose B-pillar trim. It wasn't until six years later that Ford believed the issue to warrant a safety recall, following a March 2025 NHTSA investigation that detailed 38 customer complaints where the trim piece detached completely. An internal team at Ford then began investigating the issue by harvesting doors from scrap yards and reviewing photos from customer complaints. A thorough review of previous part design and assembly plant processes allowed Ford to quickly identify which model years of Explorer were affected, eventually prompting the recall by May. Unfortunately for Explorer owners, there is no fix just yet. Ford says a remedy is under development, indicating that the problem could be attributable to a larger design flaw with the B-pillar or fastening systems in these particular units. Once a fix has been found, Ford says Explorer owners will be sent to their local Ford or Lincoln dealer to have it performed. This recall is perhaps less serious than the swath of issues plaguing the entire Ford lineup as of late. Other Ford recalls have focused on broken control arms (particularly in Ford Bronco and F-150 Lightning models) and fuel leaks, as well as electrical issues, including failing instrument clusters and faulty backup cameras. All told, millions of Fords have now been recalled over the course of 2025, ensuring that service departments at dealerships around the country will stay busy this summer. You Might Also Like You Need a Torque Wrench in Your Toolbox Tested: Best Car Interior Cleaners The Man Who Signs Every Car

Five new Ford recalls announced: Which models are at risk? Here's a full list
Five new Ford recalls announced: Which models are at risk? Here's a full list

Hindustan Times

time3 days ago

  • Automotive
  • Hindustan Times

Five new Ford recalls announced: Which models are at risk? Here's a full list

The National Highway Traffic Safety Administration (NHTSA) reports that Ford Motor Company has announced five recalls involving 42,000 cars. The recall applies to several popular models, for example, the F-150 and Escape and concerns risks of both fire and accidents. Vehicles affected: 30,679 Ford says the 2024 Ford Nautilus' multimedia software may cause your screens, including the speedometer and warning indicators, to go blank or reboot at random. That means you might not be able to see your speed or detect other vehicle warnings, which increases the risk of an accident. Ford will update the software either at a dealership or over the air, free of charge. Notification date: 16 June Recall number: 25C21 ALSO READ| Ford recall: Here's why over 1 million cars have been recalled. List of models affected Vehicles affected: 192 This small but serious recall involves all-electric 2022 F-150 Lightning trucks equipped with 20- or 22-inch all-season tires. Ford says a previous recall (22V-453) may have been incorrectly handled, causing the tire pressure monitoring system to fail. Often, the system in your car fails to let you know if your tires are underinflated, which makes a crash more likely, they claim. The automobile giant said a software update will fix the issue for free. Notification date: 23 June Recall number: 25C20 Vehicles affected: 6,781 This recall includes several SUVs, including the 2024–2025 Lincoln Nautilus, 2023–2025 Escape, and certain Bronco Sport and Maverick models. The risk? The engine block heater could overheat and catch fire while the vehicle is parked. Now, Ford dealers will have to replace the heater element and check or replace the cord for free. Notification date: 6 June Recall number: 25S52 Vehicles affected: 154 Ford says some 2025 Transit, F-150, and Explorer models may have engine parts with manufacturing defects. These could result in sudden engine failure and even crashes. 'The connecting rod and rod bearing components may have manufacturing defects that can lead to engine damage and engine failure,' NHTSA warned. Ford is still looking into this matter. Notification date: June 9 Recall number: 25S55 ALSO READ| Ford recalls 274,000 Navigator and Expedition SUVs over brake function risk Vehicles affected: 1,797 2020–2023 Escape, 2021–2023 Corsair, or 2022–2023 Maverick with a 2.5L HEV or PHEV engine at risk of engine failure, especially those cars that were previously repaired under recall 23V380. Owners are advised not to keep driving and should stop with the engine off if they notice unusual engine sounds, a loss of power, or smoke. Ford promised a free update to the powertrain control module software. Recall number: 25S54

Ford posts May sales gain with employee discounts for all
Ford posts May sales gain with employee discounts for all

Chicago Tribune

time3 days ago

  • Automotive
  • Chicago Tribune

Ford posts May sales gain with employee discounts for all

Ford Motor Co.'s U.S. sales increased 16.3% last month year-over-year, making for the Dearborn automaker's best May since 2019. The company is offering thousands of dollars in discounts per vehicle as a part of its offering of 'A Plan' discounts typically reserved for employees to its customers through the July 4 weekend. It comes in response to the Trump administration imposing 25% tariffs on imported vehicles and certain parts, and analysts say consumers have moved up their purchases in anticipation of price increases further into the year. Some of that activity, however, has slowed, according to S&P Global Mobility, which is predicting a 2% increase year-over-year in overall U.S. sales for the fifth month of 2025. At Ford, sales of gas- and diesel-powered vehicles, which represented 87% of it sales, grew 17% in May compared to a year ago. Hybrids were up 29%, and electric vehicles fell by a quarter as sales of the F-150 Lightning pickup and E-Transit commercial van declined 42% and 93%, respectively. Lincoln sales grew by 39%. Truck sales were up 11% in May. F-Series pickups increase almost 15% for their best May since 2019. Ranger grew by 34% and Maverick grew 14% for a May sales record, including a 4% increase for its hybrid variant. Transit overall was down 4.1%. Ford SUV sales grew by 23%. Bronco Sport gained 46%, Escape was up 24%, Bronco got a 51% boost and Mustang Mach-E increased 11%. Explorer was up 23%, and Expedition had its best May in 20 years, growing by 43%. The Mustang coupe fell 3.2% in May. Early last month, Ford said it increased the prices by as much as $2,000 on its Mexico-built vehicles, including Bronco Sport, Mustang Mach-E and Maverick, because of tariffs. Trump has pushed auto tariffs to safeguard national security and bolster the industry's domestic supply chain. The president has insisted the import taxes will increase U.S. vehicle production, create well-paying manufacturing jobs and generate federal income to lower taxes and pay off national debt. Despite auto executives and analysts saying tariffs will affect consumers, and that it takes years to add assembly in the United States, the president has said he couldn't care less if automakers raise their prices. At luxury brand Lincoln, all of its products saw increases in sales for the month for its best May since 2007. Corsair was up 5.6%. The China-built Nautilus had its best May, growing by 24%. Aviator's 42% growth was its best May performance since 2003. Navigator increased by 133% for its best May in years, as well.

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