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Ford Announces Another Recall of 273K Units in North America

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Per Reuters, Ford Motor Company (F - Free Report) is recalling roughly 273,000 of Ford Ranger pickups and Fusion vehicles in North America. A transmission glitch can shift gears and roll away vehicles if the gear is not in the "park" mode.

Out of the total recalls, Fusion cars consist nearly 270,000 from the model years 2013 through 2016. The cars have a shifter cable, which, in case of disconnection from the transmission, will result in unintentional vehicle movement. Approximately 2,800 Ford Ranger trucks of the model year 2019 have a similar problem that led to the recall.

The dealers will fix the issue in the recalled Fusions by tightening the two fasteners that are used to secure shift cable bracket to the transmission. Ford is uninformed about any accident or injury for this issue in Ranger pickups. However, it received three reports of property damage and one injury report due to defective Fusion sedans.

Ford Motor Company Price and Consensus

 

In April 2019, the automaker recalled 327,000 F-Series pickup trucks for the second time to fix the damage that occurred from a previous recall in December 2018. The recall of trucks was issued in North America to solve problems associated with engine block heater cables that could lead to fire. The vehicles included 2015-19 F-150 and 2017-19 Super Duty trucks.

Frequent recalls for fixing faulty vehicles are concerning Ford. Apart from elevating expenses for repairing faulty vehicles, recalls also hurt consumers’ confidence in a brand.

Price Performance

Over the past three months, shares of Ford have gained 21.8% against the industry’s decline of 4.3%.

 

 

Zacks Rank & Other Key Picks

Ford currently carries a Zacks Rank #2 (Buy). A few other top-ranked stocks in the broader auto sector are Cummins Inc. (CMI - Free Report) , AutoZone, Inc. (AZO - Free Report) and AB Volvo (VLVLY - Free Report) . Cummins and AutoZone currently carry Zacks Rank of 2 while Volvo sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Cummins has an expected long-term growth rate of 8.4%. The stock has gained 4.5% in the past three months.

AutoZone has an expected long-term growth rate of 7.3%. The stock has gained 6.7% in the past three months.

Volvo has an expected long-term growth rate of 5%. Over the past three months, shares of the company have gained 1.1%.

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