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Ford Recalls Figo and Classic in India

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In addition to the 128,000 cars vehicles recalled in Aug 2012, Ford Motor Co.’s (F - Analyst Report) Indian arm Ford India Pvt. Ltd. reportedly recalled more than 166,000 Figo subcompact hatchback and Classic compact cars in India. Ford recalled the vehicles to fix potential issues regarding the rear twist beam (RTB) and power-assisted steering (PAS) hose.

Almost 109,469 Figo and 22,453 Classic cars are being recalled by Ford to examine a faulty rear twist beam, which could crack, resulting in noise and deteriorated performance and in extreme cases could even lead to vehicle breakdown. Another 30,681 Figo and 3,418 Classic cars are being recalled to check for oil leakage in the power-assisted steering hose, which can result in smoke and fire.

While both diesel- and gasoline-powered cars manufactured from Jan 2011 to Jun 2012 are being recalled to examine the rear twist beam, only the gasoline version cars manufactured between Jan–Aug 2010 and Mar–Nov 2011 are being recalled for the fault in the steering hose.

Ford had recalled almost 128,000 cars in Aug 2012 to address the same problem. However, the company is not aware of any accident or injury due to these problems.

While the automobile market is witnessing growing sales, a series of product recalls are plaguing the manufacturers. In Jul 2013, Ford recalled 972 units of diesel variant of EcoSport mini sports utility vehicles (SUVs) in India due to a glitch in the glow plug module, which helps in starting engines.

Moreover, last month Ford recalled 370,000 units of Ford Crown Victoria, Mercury Grand Marquis and Lincoln Town Car sedans manufactured from 2005 to 2011 in the U.S and Canada to replace a steering shaft.

Another automaker, General Motors Company (GM - Analyst Report) also recalled the diesel version of Chevrolet Sail in India to fix a faulty engine part earlier this month. In Jul 2013, General Motors had recalled 114,000 Chevrolet Tavera sport-utility vehicles (manufactured from 2005 to 2013) in India to repair problems related to emission standards and other government specifications. Honda Motor Co. Ltd. (HMC - Analyst Report), Mahindra & Mahindra Ltd. and Toyota Motor Corporation (TM - Analyst Report) also recalled vehicles in India last year due to inability to meet the manufacturing-quality standards of the Society of Indian Automobile Manufacturers.

Automotive safety recalls were brought into focus by media after Toyota’s announcement of the largest global recall of 3.8 million vehicles in Sep 2009, triggered by a high-speed crash that claimed 4 lives. Later on, Toyota had to face numerous personal injury and wrongful death lawsuits in federal courts, hampering its image.

Ford currently carries a Zacks Rank #2 (Buy).

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