Ford Motor (NYSE:F)
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6 Months : From Apr 2019 to Oct 2019
By Chris Wack
Ford Motor Co. said Wednesday that it would recall about 1.2 million Explorers built between 2011 and 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, would be about $180 million and reflected in its second-quarter results; the cost would be incurred by its North America business unit.
The affected Explorers were built at Ford's Chicago assembly plant from May 2010 to January 2017 and include 28,000 sold in Canada.
Ford also recalled about 123,000 select F-150 trucks built between 2012 and 2013 due to a transmission calibration issue, and 4,300 Ford Econoline vans built between 2009 and 2015 because of a motive power issue. The company issued a recall in Canada for Taurus, Flex, Lincoln MKS and MKT vehicles, because of 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.
(END) Dow Jones Newswires
June 12, 2019 10:45 ET (14:45 GMT)
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