Ford ( F Quick Quote F - Free Report) recently recalled nearly 200,000 cars in the United States to repair a problem obstructing the brake lights from turning off. The affected vehicles include certain 2014 and 2015 Ford Fusion and Lincoln MKZ midsize models as well as some 2015 Ford Mustang convertibles. The brake light issue in the recalled vehicles involves a separated brake pedal bumper. Reportedly, high temperatures, high humidity and salt air can cause the brake pedal bumper to corrode and disintegrate, keeping the brake lights on at all times, as if the driver has applied the brakes. Moreover, for cars equipped with automatic transmission, the vehicle could potentially shift out of park gear without the driver applying the brakes, which could lead to the cars rolling away. Per National Highway Traffic Safety Administration (NHTSA), these defects can enhance the risk of a crash. Ford is not aware of any crashes or injuries involving the defects. The recall mainly focuses on cars originally sold or registered in Texas, Louisiana, Mississippi, Alabama, Florida, Georgia, South Carolina, North Carolina, Virginia and Hawaii. In order to ensure that the defective cars will not move out of park gear or continuously apply the brake lights, owners will need to bring their cars to a dealer for a free-of-charge repair. Dealers will replace the brake bumper and the clutch pedal bumper. Though the clutch bumper is not part of the recall, Ford stated that the parts are manufactured from the same material and both the bumpers will be replaced at the same time to avoid any potential issues. Owners will be notified by mail notices starting Mar 3 for the repair. Ford currently flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. The auto biggie recently listed several large special items that it intends to report as part of its fourth-quarter and full-year 2021 financial results. It announced that it will record a gain of $8.2 billion on its equity investment in Rivian Automotive. Ford plans to issue its fourth-quarter and full-year 2021 earnings release on Feb 3, 2022. Recently, Ford announced its decision to team up with security company ADT Inc. to form a joint venture named Canopy to offer vehicle security systems as an aftermarket product. Other Key Auto Picks
A few other stocks in the auto space that investors can consider are
Tesla ( TSLA Quick Quote TSLA - Free Report) , General Motors ( GM Quick Quote GM - Free Report) and LKQ Corporation ( LKQ Quick Quote LKQ - Free Report) . While Tesla flaunts a Zacks Rank of 1, General Motors and LKQ Corp carry a Zacks Rank of 2 (Buy) currently. Tesla has an expected earnings growth rate of 32.7% for 2022. The Zacks Consensus Estimate for its 2022 earnings has been revised 55 cents upward in the past 30 days. Tesla’s earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing once, delivering an earnings surprise of 25.4%, on average. TSLA has surged 17.1% in the past year. General Motors has an expected earnings growth rate of 2.8% for 2022. The Zacks Consensus Estimate for its 2022 earnings has been revised 19 cents upward in the past 30 days. General Motors’ earnings beat the Zacks Consensus Estimate in the last four quarters, delivering an earnings surprise of 46.5%, on average. GM has surged 0.7% in the past year. LKQ Corp has an expected earnings growth rate of 11.59% for fourth-quarter 2021. The Zacks Consensus Estimate for its fourth-quarter 2021 earnings has been revised a penny upward in the past 90 days. LKQ Corp’s earnings beat the Zacks Consensus Estimate in the last four quarters, delivering an earnings surprise of 34.4%, on average. LKQ has rallied 45.6% in the past year.