Ford Recalls 230,000 Vehicles Over Suspension Issue
Ford Motor Co. (NYSE: F) on Wednesday issued a safety recall notice for some 227,000 model years 2013 to 2018 vehicles in order to replace a faulty rear suspension part. The recall involves more than 211,000 vehicles sold in the United States and its federal territories, more than 15,000 vehicles sold in Canada and almost 1,400 sold in Mexico.
Affected vehicles include model years 2013 to 2018 Ford Flex and Lincoln MKT vehicles built at the company’s Oakville, Ontario, assembly plant between September 12, 2011, and June 1, 2017. Other recalled vehicles in model years 2013 to 2018 Ford Taurus Police Interceptor Sedans and Ford Taurus vehicles equipped with the SHO Performance Pack built at the Chicago assembly plant between August 25, 2011, and June 1, 2017.
According to the recall notice, “Affected vehicles that are exposed to frequent full rear-suspension articulation (jounce and rebound) may experience a fractured rear suspension toe link. A rear toe link fracture while driving increases the risk of a crash.”
Ford said it is not aware of any accident or injury related to the faulty part. Owners will be notified of the recall beginning March 2 and the company’s dealers will replace the left-hand and right-hand rear suspension toe links with new forged toe links.
Ford reported poor quarterly and full-year results last week and earlier this week promoted Jim Farley, who had been president of Ford’s new businesses, technology, and strategy unit to COO. The move resulted in the resignation of Joe Hinrichs, president of the company’s automotive group, effective March 1. Farley is now the clear heir-apparent to CEO Jim Hackett who has taken some lumps for the company’s poor showing.
Ford stock traded up about 2.8% Wednesday morning, at $8.32 in a 52-week range of $8.02 to $10.56. The stock’s 12-month consensus price target is $9.33, and the dividend yield is a rich 7.44%.