Ford F) recently issued a recall of roughly 311,907 Ford Explorer vehicles in the United States, 23,380 in Canada and 3,045 in Mexico to fix seat frames with sharp edges. The affected vehicles were manufactured in the Chicago Assembly Plant from Feb 13, 2016, through Oct 25, 2017.
The recall only affects models with powered seats. The U.S. auto giant revealed that the affected vehicles could harm owners when they reach between the power front seat and center console. Notably, there are 31 reports of hand injuries due to this fault.
Ford will require owners to bring Explorer vehicles to a dealer, where a technician will install flocked tape over the sharp edges and tabs at no added cost. Meanwhile, customers are advised to be cautious and avoid contact with the seat frame edge until the repair is complete.
The company has been regularly recalling vehicles to fix safety issues. In more than a month, Ford issued two recalls — the first for 108K mid-sized cars and the second for more than 500K SUVs and trucks in North America. In addition to elevating costs for repairing defects, frequent recalls and criminal investigation reduce consumers’ confidence in a brand.
While frequent recall issues and declining margins in international markets remain headwinds for Ford, its focus on SUV and trucks will likely aid in expanding margins in the near future. The company is working to introduce new models of electric vehicles, which are the future of this industry.
Ford Motor Company Price and Consensus
Ford Motor Company price-consensus-chart | Ford Motor Company Quote
Zacks Rank & Stocks to Consider
Ford currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the Auto-Tires-Trucks sector are Lithia Motors LAD, Douglas Dynamics, Inc. PLOW and SPX Corp. SPXC. While Lithia currently sports a Zacks Rank #1 (Strong Buy), Douglas and SPX carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Lithia has an expected earnings growth rate of 12.8% for 2019. The company’s shares have gained 78.3% year to date.
Douglas has an expected earnings growth rate of 11.8% for 2019. The company’s shares have gained 19.1% year to date.
SPX has an estimated earnings growth rate of 22.7% for the ongoing year. Its shares have gained 18.8% year to date.
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