Ford (F) Recalls More Than 230K Explorers to Prevent Rollaway
Ford F issued a recall for Explorer SUVs from the model year 2020-22 due to rollaway risk in the absence of a parking brake. Per the National Highway Traffic Safety Administration, 238,364 vehicles are part of the recall.
The agency said that if the drive shaft disconnects, the vehicle could roll away if the parking brake is not engaged, resulting in a crash.
Per Ford’s spokesperson, in the previous recall, the company used software updates to address the rollaway risk.
Last time, the company inspected only defective vehicles and replaced the parts for free. This time, Ford must examine all the vehicles that are part of the recall.
Ford will repair the vehicles free of cost. The rear axle bolt and subframe bushing will be replaced and the rear axle cover will be inspected for damage. Owners of the affected vehicles will be informed via mail on Nov 6, 2023.
Ford is not aware of any accidents or injuries related to the defect.
Meanwhile, Ford feels the heat from the ongoing United Auto Workers (“UAW”) strike.
Ford's Executive Chairman, Bill Ford, has urged the UAW to reach an agreement and end the strike, which poses a growing risk to the American automotive industry. The strike against Ford, General Motors GM and Stellantis STLA commenced on Sep 15, 2023. The union has been demanding better pay and working conditions.
Recently, the UAW targeted Ford’s Kentucky plant, which generates $25 billion in annual revenue and is one of the company’s most profitable plants.
Ford stated that Toyota, Honda, Tesla and other automakers besides Detroit Three are relishing the strike because it will cut down the competition and benefit them. The strike will destroy the fragile supply base and majorly impact the country’s economy, he added.
The union has tried to increase pressure on Detroit Three by targeting new factories.
The union alleged that the automakers formed joint ventures (JVs) with battery manufacturers to cast the union out of the new factories. The automakers’ agreements with the union do not cover the JV-owned battery plants. However, the union wants to protect its members through agreements as the industry transitions to EVs.
General Motors recently agreed to include battery cell workers in its national agreement.
Shawn Fain, president of UAW, expects Stellantis and Ford to follow GM’s lead. However, Ford hesitated to include three EV battery plants under its main contract with the UAW.
Kumar Galhotra, president of Ford Blue, said the difference between Ford and GM prevents the company from accepting a term similar to GM.
Since the commencement of the strike, Ford has sacked nearly 2,500 employees.
Ford said that the union should join hands with the automaker to stop Toyota, Honda, Tesla and other Chinese automakers from entering its home market.
Fain said the strike is not about foreign automakers’ invasion but about the autoworkers against corporate greed.
F currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ford Motor Company (F) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
Stellantis N.V. (STLA) : Free Stock Analysis Report
