Ford has announced a recall of over 850,000 vehicles, including multiple popular models, due to a risk of fuel pump failure that can cause engine stalls. The low-pressure fuel pumps pose a safety concern while driving. The recalls are part of a larger pattern, with Ford recalling four million vehicles by June, averaging 50,341 vehicles per recall. Warranty costs have significantly affected Ford's earnings, resulting in a $500 million impact on adjusted EBIT in the fourth quarter. Despite facing substantial losses in the electric vehicle market, the company aims to improve its financial position moving forward.
Ford Motor Company is recalling certain 2021-2023 Bronco, Explorer, Lincoln Aviator, and other models due to a potentially failing low-pressure fuel pump that poses a danger while driving.
The average vehicles recalled per incident is 50,341, with a recall occurring every 2.12 days, reflecting the significant number of vehicles impacted by safety issues.
Ford's warranty work has notably cut its adjusted EBIT by $500 million in the fourth quarter, highlighting the financial strain recalls create on the company.
CEO Jim Farley indicated that warranty costs are inhibiting Ford's earnings potential but hinted that improvements could lead to financial benefits for investors.
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