Ford Recalls 1.2 Million Explorers for Rear Suspension Issue--Update
13 June 2019 - 12:36AM
Dow Jones News
By Chris Wack
Ford Motor Co. (F) said Wednesday that it was recalling about
1.2 million Explorers built in 2011 to 2017, as well as some 2013
F-150s and Econoline vans.
The auto maker said in a filing that the cost of the Explorer
recall, to fix a potential rear-suspension fracture issue, will be
incurred by its North America business unit, will be about $180
million and reflected in its second-quarter results.
The affected Explorers were built at Ford's Chicago assembly
plant from May 2010 to January 2017 and includes 28,000 sold in
Canada.
Ford also recalled about 123,000 select F-150 trucks built in
2012 to 2013 due to a transmission calibration issue and 4,300 Ford
Econoline vans built in 2009 to 2015 for a motive power issue. The
company issued a recall for the Taurus, Flex, Lincoln MKS and MKT
in Canada for rear suspension issues, affecting about 12,000
vehicles.
Ford said that for the full year it continues to expect adjusted
earnings before interest and tax to be higher than in 2018.
Ford also said a panel of three Federal Circuit judges Friday
ruled against the company in a case with the U.S. Customs and
Border Protection Agency regarding Ford Transit Connect
vehicles.
The ruling requires Ford to pay a 25% duty applicable to cargo
vehicles instead of the 2.5% duty toward passenger vehicles.
Ford said it is evaluating its options following the ruling.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
June 12, 2019 10:21 ET (14:21 GMT)
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