We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ford Pauses Mustang Mach-E Sales Due to Door Lock Issue
Read MoreHide Full Article
Key Takeaways
Ford is recalling around 317,000 Mach-E vehicles due to a defect that may lock occupants in or out.
F instructed dealers to pause sales until a Q3 software update resolves the door malfunction.
Some Mach-E owners may need in-person service as the software fix won't be fully over-the-air.
Ford Motor Company (F - Free Report) is issuing a global recall for around 317,000 Mustang Mach-E vehicles due to a malfunction that could cause drivers to become locked out or, in some cases, leave the occupant trapped inside the car.
The recall affects Mach-E models from the 2021 to 2025 model years, both in the United States and abroad. Ford has instructed its dealers not to sell or deliver any affected vehicles, which are manufactured in Mexico, until a forthcoming software update addresses the problem.
The issue arises when the car is shut off and the occupants exit using the mechanical interior door handles. The doors might stay locked after closing, posing a danger if a child or pet remains inside. Ford warned that in such situations, a person who exits may be unable to quickly re-enter and assist someone still inside who cannot open the door from within, potentially leading to serious harm, especially in high temperatures.
So far, Ford says no injuries or accidents have been linked to the defect. The automaker is working on a software fix, expected to become available in the third quarter. Until then, the stop-sale order remains active. While current owners will be eligible for the update, some may need to visit a dealership rather than receiving it over the air. Once the fix is ready, Ford will contact owners via mail to arrange a service appointment at no cost.
From January through May this year, Ford sold 19,258 Mach-E units in the United States, up 2.8% from the same period last year. In contrast, sales of the gas-powered Mustang fell 18% to 19,309 units.
The company recently increased the Mach-E's price by up to $2,000, partly in response to a 25% tariff on imported vehicles and parts imposed by President Donald Trump. Ford estimates these tariffs will cost the company $2.5 billion in 2025, though it aims to offset $1 billion of that through pricing and cost-cutting strategies.
The Zacks Consensus Estimate for CARG’s 2025 sales and earnings implies year-over-year growth of 4.96% and 25%, respectively. EPS estimates for 2025 and 2026 have improved 30 cents and 44 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for STRT’s fiscal 2025 sales and earnings implies year-over-year growth of 3.49% and 8.11%, respectively. EPS estimates for fiscal 2025 and 2026 have improved 73 cents and $1.63, respectively, in the past 60 days.
The Zacks Consensus Estimate for MGDDY’s 2025 sales and earnings implies year-over-year growth of 1.69% and 37.76%, respectively. EPS estimates for 2025 have improved by a penny in the past 30 days. EPS estimates for 2026 have improved by 3 cents in the past seven days.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Ford Pauses Mustang Mach-E Sales Due to Door Lock Issue
Key Takeaways
Ford Motor Company (F - Free Report) is issuing a global recall for around 317,000 Mustang Mach-E vehicles due to a malfunction that could cause drivers to become locked out or, in some cases, leave the occupant trapped inside the car.
The recall affects Mach-E models from the 2021 to 2025 model years, both in the United States and abroad. Ford has instructed its dealers not to sell or deliver any affected vehicles, which are manufactured in Mexico, until a forthcoming software update addresses the problem.
The issue arises when the car is shut off and the occupants exit using the mechanical interior door handles. The doors might stay locked after closing, posing a danger if a child or pet remains inside. Ford warned that in such situations, a person who exits may be unable to quickly re-enter and assist someone still inside who cannot open the door from within, potentially leading to serious harm, especially in high temperatures.
So far, Ford says no injuries or accidents have been linked to the defect. The automaker is working on a software fix, expected to become available in the third quarter. Until then, the stop-sale order remains active. While current owners will be eligible for the update, some may need to visit a dealership rather than receiving it over the air. Once the fix is ready, Ford will contact owners via mail to arrange a service appointment at no cost.
From January through May this year, Ford sold 19,258 Mach-E units in the United States, up 2.8% from the same period last year. In contrast, sales of the gas-powered Mustang fell 18% to 19,309 units.
The company recently increased the Mach-E's price by up to $2,000, partly in response to a 25% tariff on imported vehicles and parts imposed by President Donald Trump. Ford estimates these tariffs will cost the company $2.5 billion in 2025, though it aims to offset $1 billion of that through pricing and cost-cutting strategies.
F’s Zacks Rank & Key Picks
Ford carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the auto space are CarGurus, Inc. (CARG - Free Report) , Strattec Security Corporation (STRT - Free Report) and Michelin (MGDDY - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CARG’s 2025 sales and earnings implies year-over-year growth of 4.96% and 25%, respectively. EPS estimates for 2025 and 2026 have improved 30 cents and 44 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for STRT’s fiscal 2025 sales and earnings implies year-over-year growth of 3.49% and 8.11%, respectively. EPS estimates for fiscal 2025 and 2026 have improved 73 cents and $1.63, respectively, in the past 60 days.
The Zacks Consensus Estimate for MGDDY’s 2025 sales and earnings implies year-over-year growth of 1.69% and 37.76%, respectively. EPS estimates for 2025 have improved by a penny in the past 30 days. EPS estimates for 2026 have improved by 3 cents in the past seven days.