Ford recalls vehicles due to fire risk
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Ford Motor is leading the industry in recalls and filed another one this week. The automaker said it will take a $570 million charge in Q2 earnings.
What implications does this carry for Ford and investors? The consequences are serious. Quality issues could damage consumer trust and increase warranty and recall costs. Ford stock remains down approximately 15% over the past 12 months,
Ford says it sold 30,000 Broncos in May alone. The vehicle has become so popular that, according to Ford Blue and Model e President Andrew Frick, the four-door Bronco beat the iconic Jeep Wrangler in sales for the seventh consecutive month.
Ford found that one of the engine’s injectors could crack, causing gasoline vapor to leak at a high rate into the cylinder head. From there, it can travel out of the engine via a drain hole and potentially hit a hot surface like the exhaust or turbo, which could cause a fire.
Ford checked in just below industry average in J.D. Power's 2025 Initial Quality Study. Ford's quality improvement will take time to see as new vehicles replace old models. One of the big knocks against Ford Motor Company (NYSE: F) over the past few years has been its recalls,