Ford's Success Battered By 615,000 Recall

"Ford will recall approximately 615,000 vehicles in the U.S. over two separate safety defects involving windshield wiper motors and driveshaft components, according to the National Highway Traffic Safety Administration. One can cause a crash. The larger number of vehicles recalled are the 2020-2022 model-year Ford Escape, Explorer, Lincoln Corsair, and Aviator."

"Ford had another recall last month that affected approximately 4.38 million trucks and SUVs involving certain 2021-2026 F-150, 2022-2026 Super Duty, 2024-2026 Ranger, 2022-2026 Expedition, 2022-2026 Lincoln Navigator, 2022-2026 Maverick, and 2026 Transit vehicles. Notably, some of the vehicles recalled recently were from recent models, which means that Ford's quality problem is, indeed, not behind it."

"There is something wrong with the manufacturing systems and quality control that keeps failing. In the last five years, Ford's stock has been flat, while the market is 78% higher. Jim Farley became CEO in October 2020. The stock is a judgment of his tenure."

Ford took a $19.5 billion write-off for its EV business while struggling with chronic manufacturing quality issues. Despite management claims that quality problems are resolved, Ford announced recalls of approximately 615,000 vehicles for windshield wiper motor and driveshaft defects, with one defect potentially causing crashes. The recalled vehicles include 2020-2022 Ford Escape, Explorer, Lincoln Corsair, and Aviator models. Additionally, Ford recalled 4.38 million trucks and SUVs last month involving 2021-2026 F-150s and other recent models. These recent recalls of newer vehicles demonstrate that Ford's quality problems persist despite previous assurances. While Ford's stock rose 27% over the past year, it remains flat over five years compared to the S&P 500's 78% gain, reflecting long-term market concerns about the company's operational challenges.

Read at 24/7 Wall St.