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Ford (F) Recalls 175,000 Vehicles to Address Safety Issue

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Ford Motor Company (F - Free Report) is recalling more than 175,000 Bronco models from 2021 to 2023 due to a fault in the seatbelt latch. Per the National Highway Traffic Safety Administration’s (NHTSA) notice, the seatbelt latch might be difficult to access and could potentially compromise the passenger’s safety. A free fix will be available at Ford dealerships to remedy the issue. The dealers will add sliding clip latch stops to the seatbelts of the driver and the adjacent seat of the driver.

The auto giant also changed its previous decision to remove AM radio from its new vehicles. Ford changed its decision following a discussion with government policy leaders who are concerned about the announcement of emergency alerts that are broadcast on AM stations. Jim Farley, CEO of Ford, said that all Ford and Lincoln vehicles from 2024 would include AM radio and all the existing EV owners who are deprived of AM functionality would receive a software update to gain access.  

Ford remains on track to reach an annualized EV production capacity of 600,000 units globally by the end of this year. The firm’s aggressive EV push, with planned spending of around $50 billion by 2026 and target production of more than 2 million EVs by 2026-end (witnessing a 49% CAGR throughout 2023-2026), augurs well for long-term growth. By 2030, Ford expects EVs to account for 50% of its global sales, which will cement its position in the red-hot EV landscape.      

While Ford’s massive investments in green vehicles and self-driving cars will prove beneficial in the long term, it is likely to strain its near-term financials. Ford’s massive spending on modernization, including connectivity, IT and new product launches, is expected to limit cash flows.

Zacks Rank & Key Picks

F currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Other top-ranked players in the auto space are Mercedes-Benz Group AG , BYD Company Limited (BYDDY - Free Report) and Wabash National (WNC - Free Report) , all of which carry the same rank as Ford.

Mercedes-Benz develops, manufactures and sells passenger cars, including premium and luxury vehicles. The Zacks Consensus Estimate for MBGAF’s 2023 sales implies year-over-year growth of 6%.

BYD is engaged in the research, development, manufacture and distribution of automobiles, secondary rechargeable batteries and mobile phone components. The Zacks Consensus Estimate for BYDDY’s 2023 sales calls for year-over-year growth of around 209.6%.

Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings indicates year-over-year growth of 12% and 19.7%, respectively.


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