Auto recalls have been on the rise in recent years and the issue is unlikely to wane anytime soon. Advanced technologies used in vehicles are resulting in more complex units, software errors and new dangers, in turn bringing about a rise in recalls. Cost-cutting measures by automakers have also resulted in frequent recalls. Recently, Ford F issued three safety recalls in North America.
The first recall concerns more than 700,000 vehicles over faulty rearview cameras. The recall covers most 2020 models of Ford F-150, Escape, Explorer, Mustang, Expedition, Ranger, Edge and Super Duty pickups. The affected vehicles have malfunctioned backup cameras that can display blank or distorted images. This recall essentially affects 620,246 vehicles in the United States and federal territories, 76,566 in Canada, as well as 4,302 in Mexico. Reference number for this recall is 20C19.
The second recall concerns more than 40,000 select Ford Mustang vehicles built at the Flat Rock Assembly Plant from March 2019 to August 2020. The U.S. auto biggie is issuing the recall to fix a defect that could result in fracturing of the brake-pedal bracket. This recall essentially affects 38,005 vehicles in the United States and federal territories, 2,251 in Canada, as well as 322 in Mexico. Reference number for this recall is 20S52.
The third recall is for select 2019 Ford F-Series Super Duty vehicles to fix the front axles that may feature a poor weld job, which can negatively impact vehicle control and increase the chances of crash. This recall affects 9,628 vehicles in the United States and federal territories, as well as 961 in Canada. The affected vehicles were developed in the Kentucky Truck Plant within August-October 2019. Reference number for this recall is 20S56.
Meanwhile, Ford has slashed the price of the upcoming all-electric Mustang Mach-E SUV by as much as $3,000 in a bid to stay competitive in the overcrowded e-mobility space. The price of Mustang Mach-E Select RWD/AWD is cut by $1,000. The cost of the premium Mach-E models is dropped by $3,000. The company has cut the price of the CA Route 1 models by $2,000 and the ‘first’ edition models by $1,000. The first edition will be the most expensive version of the Mach-E worth $58,300.
Ford, which currently carries a Zacks Rank #1 (Strong Buy), is accelerating efforts to develop electric vehicles (EVs). The company has several EVs coming up, including Mustang Mach-E sports SUV and the F-150 pick-up. These vehicles are likely to enhance the firm’s profitability, which will help it pay back the heavy investments that Ford has made in the technology. Amid the rising popularity of green vehicles, all major auto biggies including General Motors GM, Volkswagen VWAGY and Toyota TM are fast stepping up their electrification efforts. You can see the complete list of today’s Zacks #1 Rank stocks here.
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