Ford Motor Co. (F - Analyst Report) has recalled 465,000 vehicles globally in order to repair fuel leakage. 2013 Ford Fusion, Flex, Explorer, Taurus, Interceptor Sedan and Interceptor Utility, together with the 2013 Lincoln MKZ, MKS and MKT are the models recalled.
Ford will check the fuel tank leaks, which may result in fire. However, there are no accidents or injuries reported so far owing to fuel tank leakage.
Ford has also recalled some of the 2013 Fusions for mending the steering gears, which lacks an internal retaining clip.
The automaker revealed that about 420,000 of the vehicles will be recalled in U.S., Mexico and Canada and the rest from overseas market. This recall once again casts a negative image on Ford’s best-selling Ford Fusion, as it has been recalled several times since its launch.
In Dec, Ford recalled 80,000 2013 Fusions in order to fix their engine leaks. In Nov, the automaker recalled another 19,000 Fusions to repair the lighting system. Ford also recalled 500 2013 Lincoln MKZ sedans with engine block heaters.
Recently, General Motors Company (GM - Analyst Report) , another prominent automaker recalled more than 27,000 units of its Cadillac crossover vehicles globally because their wheel nuts may not have been tightened properly at the time of assembling. The recall affects 2013 Cadillac SRX models equipped with 18-inch wheels.
Ford posted 4.1% increase in profits to $1.6 billion and a 5.1% rise in earnings per share to 41 cents in the first quarter of 2013, beating the Zacks Consensus Estimate by 3 cents.
Revenues improved 10.5% to $35.8 billion, exceeding the Zacks Consensus Estimate of $32.8 billion. The improvement in revenues and earnings was mainly attributable to Ford’s strong performance in North America and Asia Pacific Africa, partially offset by unfavorable exchange rate in South America and uncertainties in Europe.
Michigan-based Ford is one of the largest automobile producers in the world. Currently, the company carries a Zacks Rank #3 (Hold). Visteon Corp. (VC - Snapshot Report) and Tower International, Inc. (TOWR - Snapshot Report) , both carrying a Zacks Rank #1 (Strong Buy) are performing well in the broader industry where Ford operates.